Job Search Platform Indeed to Cut 2,200 Jobs, CEO to Take 25 Percent Pay Cut

US-based job search platform Indeed said on Wednesday it will cut about 2,200 jobs, or 15 percent of its workforce, joining a host of companies rationalizing their labour force following a pandemic-fuelled hiring boom.

Chief Executive Chris Hyams, who will take a 25 percent cut in base pay, said future job openings in general were at or below pre-pandemic levels and that the company was too large.

Corporate America has been laying off staff at a pace not seen since the financial crisis over a decade ago, bracing for an economic downturn triggered by aggressive rate hikes by central banks around the world.

Meta Platforms and Amazon have announced a second round of layoffs as they look to cut costs.

For Indeed, among other support measures as part of the severance package, affected employees will receive January through March bonus, regular pay for the month, accrued paid time off and access to mental health services, according to a company blogpost.

Indeed’s revenue from human resource technology will decline in fiscal 2023 and 2024, Hyams said, adding that US job openings will likely fall to pre-pandemic levels of 7.5 million or even lower in the next two to three years.

Earlier this week, Amazon.com said it would axe another 9,000 roles to make its operation lean and manage economic uncertainty, marking a new round of job cuts that pile onto the technology sector’s woes.

In a remarkable turn for a company long touting its job creation, Amazon will have eliminated 27,000 positions in recent months, or 9 percent of its roughly 300,000-person corporate workforce.

The latest slashing focuses on Amazon’s highly-profitable cloud and advertising divisions, once seen as untouchable until economic concerns led business customers to scrutinize their spending.

© Thomson Reuters 2023