This company, which helps with job search, just laid off 2,200 employees
The employees, who accounted for 15% of the organisation's workforce, were laid off on March 22, the day the layoffs were announced.
Layoffs at a company that helps people with job search! Yes, you read that right. Indeed, an American worldwide employment website for job listings, has laid off 15% of its workforce, or around 2,200 employees, for whom March 22 – the day the layoffs were announced – also turned out to be the last working day.
In a blog post, a heartbroken CEO Chris Hyams broke the news to the staff. This is a decision I truly hoped I'd never have to make. Leading a company whose mission is to help people get jobs, every single day I think about how important a job is in a person’s life. Losing a job is extraordinarily hard, financially and emotionally. For those who will be leaving, we are working to bring as much support as possible to each of you, wrote Hyams.
Why the layoffs?
Taking 'sole accountability' for the decision to layoff employees, he said the move was necessitated due to the organisation's estimation that in the United States, job openings are likely to come down to the pre-pandemic levels of about 7.5 million, and go even lower over the next two-three years.
Hyams also announced he will take a 25% cut in his base pay.
Who all are affected?
According to the CEO, the cuts have been made from nearly every department, function, level, and region, at both Indeed and Indeed Flex. The specific decision on who and where to cut, though difficult, was made with ‘great care,’ he noted.
Those affected received an email with the subject line Your Position Has Been Impacted. People retained, on the other hand, received a mail with the subject line Your Position Has Not Been Impacted.
The standard severance package will have additions based on the role and location. Under the severance agreement, however, they will receive:
(1.) 16 weeks of base salary 2 weeks for every year of service (whichever is greater).
(2.) 4 months of Consolidated Omnibus Budget Reconciliation Act or COBRA (in the US only).
(3.) Accrued paid time off (wherever applicable).
(4.) A cash payout equivalent to restricted stock unit (RSU), scheduled to vest on May 1.
(5.) Access to ongoing career placement (for six months).
(6.) Access to ongoing mental health services (for twelve months).