Recruit Holdings, the Japanese parent company of Indeed and Glassdoor, is laying off around 1,300 employees, representing 6% of its HR technology workforce. The majority of these positions are based in the United States and span departments such as research & development, human resources, global operations, and sustainability.
Consolidation of Brands
As part of the restructuring, Glassdoor will be fully integrated into Indeed. The overhaul will lead to leadership changes: Glassdoor’s CEO Christian Sutherland‑Wong will depart by October 1, and Indeed’s Chief People & Sustainability Officer LaFawn Davis will also be leaving later in the year.
AI at the Core
CEO Hisayuki “Deko” Idekoba emphasized that this move is a strategic pivot toward artificial intelligence. He revealed that, currently, one-third of the company’s new programming code is generated via AI, and the goal is to reach 50% in the near future. Recruit Holdings views this as a necessary step to streamline hiring, reduce manual costs, and remain competitive in the $300 billion+ HR tools market.
In Line with Industry Trends
The layoffs are part of a broader tech industry trend: companies such as Meta, TikTok, Intel, and Microsoft are also reducing headcounts while increasing investments in generative AI. Recruit noted that the job cuts were already factored into its latest financial projections, underscoring that the restructuring was deliberate and forecasted.
Historical Context
This is the third consecutive year of layoffs at Indeed: in 2023, 2,200 jobs were eliminated, and in May 2024, another 1,000 positions were cut. These moves are part of a long-term effort to contain costs, eliminate redundancies, and shift toward a tech-first operational model.
What Lies Ahead
Recruit Holdings is positioning itself to become a leading force in the AI-powered HR space. By refocusing its engineering efforts through AI-generated code, it intends to simplify the hiring process for both job seekers and employers. However, the broader implications, including potential shifts in company culture, service delivery, and job availability in HR support functions, remain to be seen.
This latest round of layoffs reflects a decisive shift within Recruit Holdings: moving away from traditional roles and toward a future driven by artificial intelligence. With repeated job cuts across multiple years, ongoing executive departures, and a consolidation of brands, the company is clearly prioritizing AI integration over conventional staffing models. This trend parallels a larger transformation across the tech landscape, where automation is reshaping how industries operate—and who they employ.
