Indeed and Glassdoor will fire 1,300 workers due to advances in AI
Indeed and Glassdoor will fire 1,300 workers due to a restructuring of the parent company that increasingly uses Artificial Intelligence (AI)
The impact of artificial intelligence on the world of work continues to generate concern and debate. Although it promises efficiency and automation, it has also begun to displace employees in sectors where human intervention was previously thought to be indispensable. A new case that reflects this transformation is that of Indeed and Glassdoor, two key job search platforms, which have announced the layoff of approximately 1,300 workers due to the advance of AI.
The companies, which belong to the Japanese conglomerate Recruit Holdings, will reduce approximately 6% of their global workforce as part of a strategic shift toward automated processes. The most affected areas will be the research and development teams, as well as the people and sustainability teams, mainly in the United States, although cuts are also expected in other regions.
Recruit Holdings CEO Hisayuki “Deko” Idekoba shared the news in an email sent to employees. In it, I have stated that “AI is changing the world” and that the company must adapt to remain competitive.
One of the most significant changes will be the integration of Glassdoor's operations within Indeed, which implies not only staff restructuring but also a new direction for both brands. Glassdoor's current CEO, Christian Sutherland-Wong, is stepping down as part of the process.
During a technology conference hosted by JPMorgan Chase in May, Idekoba noted that the human resources sector, valued at more than $300 billion, relies heavily on manual labor.
“It includes 60% to 65% manual labor costs,” he said. "So our belief is: how can we simplify hiring using AI, technology, and data to reduce manual labor? That's what we're focusing on."
The CEO also revealed that currently, about a third of new programming code at the company is already generated by artificial intelligence, and that number will soon reach 50%.
It's going to be 50% very soon, he added.
This announcement joins a growing trend among large corporations that are adopting AI to optimize operations. However, experts warn that this transformation also represents a risk for employment. In June, during the Aspen Ideas festival, Ford CEO Jim Farley said that artificial intelligence could replace half of administrative workers in the United States.