Austin-based Indeed cuts 2,200 jobs

KVUE
Author: Sam Searles
Published: 4:11 PM CDT March 22, 2023
Updated: 6:49 PM CDT March 22, 2023

AUSTIN, Texas — The Austin-based job search company Indeed has announced that 2,200 jobs are being cut.

Indeed is yet another company joining the big names in the tech industry for mass layoffs. In a letter from CEO Chris Hyams, around 15% of the entire company has been cut. According to the letter, the cuts affect nearly every team, function and level from any Indeed location.

"The specific decisions on who and where to cut were extremely difficult, but they were made with great care. We focused on preparing the organization for the future, aligning with our strategy and priorities, and reducing duplication of effort and inefficiency. We worked closely with the HR, Legal, and DEIB+ teams to ensure objectivity and equity in these decisions," the letter stated.

The company sent out mass emails to every single employee with either a title that read "Your Position Has Been Impacted" or "Your Position Has Not Been Impacted." Those outside of the UK, Ireland, the Netherlands and Japan have already been notified of their status, but those that reside in those countries will have to wait longer due to regional regulations.

For those that had been laid off, their last official day is Wednesday, March 22, but will receive regular pay through March 31. The laid-off employees will have until March 26 to remove personal materials from their work laptop until it is remotely wiped - but former employees will be allowed to keep it for personal use. 

The severance package for laid-off employees includes the following, according to the letter:

• "16 weeks of base salary, or two weeks for every year of service, whichever is greater
• "Four months of COBRA (US only) Accrued PTO (where applicable) A cash payout equivalent to your RSUs scheduled to vest on May 1. For employees whose initial grant date was August 1, 2022, or later, you will receive a partial payout for RSUs that would vest on May 1 with the standard one-year vesting cliff waived. The payout will be calculated at the closing stock price on Feb 1. If the closing price on May 1 is higher, you will receive an additional payment for the difference.
• "Access to ongoing career placement services for six months
• "Access to ongoing mental health services for twelve months"

Hyams cited the cooling down of the job market following the post-COVID-19 boom as the reason behind the layoffs. Hyams went on to detail that total job openings in the U.S. were down 3.5% year-over-year, and that the HR Tech revenue will likely decline in the fiscal years 2023 and 2024. 

"We have held out longer than many other companies, but the revenue trends are undeniable," the letter detailed. "I will be taking a 25% cut in base pay. Additionally, more than 75% of my total compensation is directly tied to Indeed revenue growth, and is at risk given current trends."

Read the full letter from Hyams.