Tech firm cuts 1,300 jobs to replace roles with AI

Another roughly 1,300 people are set to lose their jobs to computers. Indeed and Glassdoor, the hiring and public HR platforms that have long connected employers with online applicants, will replace six percent of their staff with AI.

Recruit Holdings, the parent company of both websites, is the latest tech firm to pivot away from white-collar labor and double down on America’s newest obsession: AI. Executives across the country have finally started to confirm that U.S. employees will lose their jobs as corporations shift to software.

Most of Indeed and Glassdoor’s layoffs are expected to hit U.S. workers, particularly in research and development, HR, and sustainability teams, according to an internal memo obtained by DailyMail.com. Indeed CEO Hisayuki 'Deko' Idekoba said the cuts include some leadership shakeups. Glassdoor CEO Christian Sutherland-Wong has stepped down following the overhaul.

But despite its mission to connect job seekers with employers, the company couldn’t resist joining the corporate rush to replace staffers with software. Job experts are raising red flags about how the AI shift is reshaping the entry-level job market — and what that means for recent graduates.

The earliest positions to be automated have largely been junior roles, traditionally filled by high school and college grads just starting out in the workforce. That trend is creating what some are calling a “diamond-shaped” employment structure — one where companies employ fewer executives and entry-level employees, while mid-career professionals enjoy expanded roles.

'AI is dissolving the bottom rung of the corporate ladder, especially in economies and industries where information work dominates,' Ignacio Palomera, the CEO of Bondex, a Web3 professional platform, told DailyMail.com. 'The first casualties are disproportionately early-career professionals and operational generalists.' Still, companies have a profit incentive to replace their workers, and many are racing to make the switch.

Microsoft — one of the leading firms investing in AI — is laying off thousands of employees this month as it shifts resources toward deeper investments. Business Insider laid off 21 percent of its staff, including dozens of reporters and editors, and said it will soon run more AI content. Last month, Lululemon said it was also replacing some support center employees with AI. Meanwhile, companies that have heavily invested in artificial intelligence have seen massive stock gains. Nvidia, the chipmaker that powers dozens of AI firms in the U.S., just became the first company ever to earn a valuation over $4 trillion. Companies that haven’t adopted AI have struggled — Intel, once one of the most dominant chipmakers in the U.S., is laying off thousands again as it tries to catch up.

Without entry-level roles, analysts say the pipeline to mid-career positions is starting to collapse. 'Historically, entry-level roles were on-ramps into a profession where you learned through accumulation,' Palomera said. 'Without serious internal repositioning, companies may experience rising attrition, passive resistance to AI adoption, or worse — cultural erosion among their most loyal talent.'