Job search portal Indeed and employer review site Glassdoor are reducing their workforce, becoming the latest companies to adjust staffing in response to a shift towards AI optimisation.

Recruit Holdings, the Japanese parent company of both platforms, will eliminate a total of 1,300 positions across the two sites.

The job cuts represent around 6% of the workforce in Recruit’s HR technology segment.

The reductions are primarily in the US, Reuters reported, citing an internal memo. However, it will impact various functions, including research and development, growth, and people and sustainability teams, across several countries.

The company did not specify the exact reasons for the layoffs in the memo.

“AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers,” Recruit Holdings CEO Hisayuki ‘Deko’ Idekoba was quoted by the news agency as saying in the email.

The decision comes amid a broader trend where US companies, including major tech firms such as Meta and Microsoft, are announcing job cuts to focus on AI investments and manage slowing economic growth.

As part of the changes, Recruit will integrate Glassdoor operations into Indeed.

Consequently, Glassdoor CEO Christian Sutherland-Wong will depart from the company after a decade, effective 1 October.

Additionally, LaFawn Davis, Indeed’s chief people and sustainability officer, will step down in September and will be succeeded by Recruit’s chief operating officer (COO) Ayano Senaha.

Recruit Holdings acquired Indeed in 2012 and Glassdoor in 2018.

Currently, it employs 20,000 people in its HR technology business unit. In 2024, the company announced plans to cut 1,000 positions.