Recruit Holdings eliminated approximately 1,300 positions at its Indeed and Glassdoor subsidiaries, representing 6% of the HR Technology segment’s workforce as the Japanese company accelerates its artificial intelligence strategy.
The cuts primarily target research and development teams in the United States, along with sustainability and growth functions. The layoffs come as Recruit folds Glassdoor operations into Indeed, with Glassdoor CEO Christian Sutherland-Wong departing October 1 and Indeed’s chief people officer LaFawn Davis leaving September 1.
Recruit reported robust financial performance for fiscal 2025, with operating income surging 21.9% to ¥490.5 billion ($3.1 billion) and revenue climbing 4.1% to ¥3.56 trillion ($22.4 billion). The company maintained its full-year guidance, indicating the workforce reduction costs were already factored into projections.
The move reflects broader industry trends where profitable technology companies are cutting jobs while investing in AI capabilities. Indeed previously eliminated 2,200 positions in 2023 and another 1,000 in 2024, bringing total workforce reductions to approximately 4,500 over three years.
CEO Hisayuki Idekoba, who returned to lead Indeed last month after a six-year absence, cited AI’s transformative impact in internal communications to employees. The consolidation strategy aims to streamline operations while the company develops automated recruitment tools.
Recruit shares have declined from recent highs, trading at ¥8,298 ($52.30) with a market capitalization of ¥12.4 trillion ($83.5 billion).
