The transformation brought by intelligenza artificiale (AI) is profoundly affecting the world of employment, as demonstrated by the recent decisions of Indeed and Glassdoor to reduce their workforce. The Japanese group Recruit Holdings, which controls both online recruitment platforms, has announced the cut of as many as 1300 jobs, a choice that reflects the urgency to adapt to the new dynamics dictated by automation and technological innovation.
Cuts due to the adoption of artificial intelligence (AI)
The cuts announced involve a large part of the internal functions of the platforms, accentuating the weight that the adoption of AI solutions in the HR sector can exert on the composition of the workforce. In particular, Recruit Holdings has stated that the decision stems from the need to maintain a competitive position, continuing to offer quality services and products to its clients.
This reorganization will lead Indeed and Glassdoor to reduce the overall staff by 6%, thus significantly impacting a total of about 20,000 employees. However, these layoffs are not an isolated event, but are part of a broad strategy that has already led, between 2023 and 2024, to a cut of as many as 3200 positions. Overall, over 15% of the holding’s workforce has been involved in the downsizing plans over the past two years.
The geographical and functional impact: United States at the center of the cuts
Although looking at different geographical areas and business functions, according to the official statement of the group, it will be particularly the US market that will be most affected by this wave of layoffs. The American offices of Indeed and Glassdoor, in fact, host a large portion of the company’s staff and strategic resources.
Research and development team, growth, human resources, and sustainability are, furthermore, the main functional sectors towards which the cuts are concentrated. This choice reflects a progressive digitalization of many internal processes, a task now often entrusted to artificial intelligence algorithms, capable of automating analysis, data selection, and management of basic operational procedures.
A complex reduction for all divisions
The scenario outlined by Recruit Holdings highlights that no area will remain completely excluded from the reorganization desired by the management. Through a strategic redistribution of resources and a progressive integration of platforms, the company’s goal remains to ensure efficiency and at the same time sustainability in the era of digital transformation. However, this translates, at least in the short term, into a significant downsizing of expert personnel, especially in the United States.
The strategy of Recruit Holdings: adaptation and integration
At the core of Recruit Holdings‘ decisions is the desire to deeply adapt to the changes introduced by artificial intelligence. CEO Hisayuki Idekoba did not provide specific details on the reasons behind this plan of cuts, but emphasized the need to evolve in order to continue offering high-level services to international clients and partners.
In parallel with the reduction of staff, the company has announced a plan for integration of Glassdoor and Indeed activities. This choice aims to create synergies between the platforms and optimize the digital offering, made possible by AI tools. A tangible example of this integration is the decision, made public by Recruit Holdings, to proceed from October 1 with the departure of Christian Sutherland-Wong, current CEO of Glassdoor. This is a move that demonstrates the depth of organizational changes, not only among subordinate positions but also at the company’s top levels.
Optimization of automation: increased use of AI software for the selection and management of professional profiles.
Reorganization of key functions: concentration of the main activities in digital and automated segments.
Integration between platforms: synergies between Indeed and Glassdoor to strengthen job search and matching services.
The evolution of the HR sector in the era of AI
The decision of Indeed and Glassdoor highlights how AI is redefining the entire human resources sector. Automation and intelligent algorithms not only allow for the optimization of time and costs, but are also radically influencing the growth strategies of the main online job platforms.
The emergence of new organizational models poses significant challenges at the employment level, making it necessary to constantly review the required skills and pay greater attention to employee retraining. However, this reconfiguration also opens up new perspectives: entrusting artificial intelligence with the more mechanical tasks allows those who remain within the company to focus on creative, relational, and innovation activities.
Changes at the top and new balances
The planned departure of the CEO of Glassdoor, Christian Sutherland-Wong, represents a key step within the broader integration process of the two platforms. This decision will allow for the creation of a more streamlined and coherent management structure in line with the digital objectives and the strategy focused on artificial intelligence. In perspective, this should make the overall governance of the group more efficient.
Future prospects: redefinition of recruiting platforms
The case of Indeed and Glassdoor offers a clear example of how digitalization and innovations brought by AI are generating profound and immediate effects on the fate of employment, even in companies born and grown precisely thanks to new technologies. Consequently, the HR sector will experience a phase of transition marked by new priorities: the enhancement of talents, the redefinition of roles, and the search for a balance between automation and human presence.
In conclusion, the strategy outlined by Recruit Holdings highlights an urgent challenge for all companies in the sector: knowing how to seize the benefits of automation without neglecting the human dimension. Adapting to these changes, investing in innovation and training, will be crucial to ensure competitiveness, value, and growth. The choices of Indeed and Glassdoor chart a path that all digital recruitment entities will have to face sooner or later.