Indeed and Glassdoor lay off 1,300 amid AI shift

The impact of artificial intelligence continues to ripple across the tech industry as Recruit Holdings, the parent of Indeed and Glassdoor, said in a press release on Friday that it would be laying off about 1,300 employees, or six percent of its workforce, between the two companies.

In an internal memo sent to employees Thursday and seen by TechCrunch, Recruit Holdings CEO Hisayuki "Deko" Idekoba said that the company will focus on "simplifying hiring by building a better job seeker and employer experience using AI."

"AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers," the memo read.

While the layoffs may have come to a shock, this focus on AI is less surprising. According to CBS News, Idekoba said in May at a JPMorgan Chase technology conference that the $300 billion-plus HR industry "includes like 60% or 65% of human labor manual cost."

"It's very difficult to find that big industry with such a high percentage of human labor manual cost," Idekoba said, according to CBS News. "And so what we believe is, basically, how can we simplify hiring with using AI and technology and data to reduce manual work. That's what we are focusing on."