Recruit Holdings, Japan’s parent company of Indeed and Glassdoor, is cutting approximately 6% of its workforce, affecting around 1,300 jobs, as it transitions to artificial intelligence (AI) adoption. The layoffs will primarily impact the research and development teams in the US, while other areas and regions may also be affected.
In an email to employees, Recruit Holdings CEO Hisayuki “Deko” Idekoba emphasized the importance of adapting to AI’s transformative power. The move reflects the company’s focus on leveraging AI to revolutionize job search platforms and recruitment processes. As part of this effort, Glassdoor will cease operations, with CEO Christian Sutherland-Wong stepping down.
Idekoba highlighted that human labor manual costs comprise 60-65% of the HR industry’s overall cost, making it a high-priority target for automation through AI. The company aims to simplify hiring using technology and data to reduce manual work. Currently, about one-third of new programming code is written by AI, with this figure expected to increase significantly.
However, not all experts share the same enthusiasm for AI’s potential. Ford CEO Jim Farley previously stated that AI may replace half of all white-collar workers in the US. As companies like Recruit Holdings invest heavily in AI adoption, it remains to be seen how these changes will impact job markets and employment opportunities.
Source: https://www.cbsnews.com/news/indeed-glassdoor-layoffs-ai-job-search