Indeed And Glassdoor Cut 1,300 Jobs As AI Reshapes Hiring Platforms

Indeed and Glassdoor will cut their workforce by 1,300 positions, and merge their business as their parent company Recruit Holdings wants to invest in AI for recruitment.

According to a Reuters report, job platforms Indeed and Glassdoor are laying off about 1,300 employees, roughly 6% of their HR tech workforce, as part of a strategic move toward artificial intelligence.

Reuters reports that the company made its decision public through an internal memo that shows most of the layoffs happened in the United States, affecting departments like research and development, growth, and sustainability, but spans globally.

“AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers,” said Hisayuki “Deko” Idekoba, CEO of parent company Recruit Holdings, as reported by Reuters.

As part of the shift, Glassdoor’s operations will merge with Indeed. Reuter notes that Glassdoor CEO Christian Sutherland-Wong will leave the company on October 1. Indeed’s Chief People and Sustainability Officer LaFawn Davis will also step down on September 1, to be succeeded by Recruit’s COO Ayano Senaha.

Recruit holds about 20,000 positions in its HR tech division since its acquisition of Indeed in 2012 and Glassdoor in 2018. The company made 1,000 job cuts in 2024 and 2,200 job cuts in 2023 because it needs to adapt to an AI-transformed job market, as reported by Reuters.

This move follows similar AI-driven restructurings across the tech sector. However, this transition to AI technology comes with multiple risks, which recent events demonstrated. In one example, the McHire.com’s AI-powered hiring system at McDonald’s exposed personal data from more than 64 million job applicants, using only basic hacking.

Meanwhile, AI agents’ experiments continue to misfire. Anthropic’s retail test with its chatbot Claude resulted in fake deals, free giveaways, and imaginary transactions. The experiment, meant to test autonomous retail, ultimately lost money and revealed how easily AI systems can spiral out of control when placed in real-world operations.

Analysts are also growing skeptical of agentic AI projects, which promise autonomous decision-making. Gartner estimates over 40% of such projects could be canceled by 2027 due to high costs, unclear benefits, and misleading claims known as “agent washing.”

These incidents underline that while AI adoption may improve efficiency, it also introduces significant privacy, security, and financial risks. As AI takes over more tasks once done by humans, organizations must balance innovation with accountability and transparency.