(Image credit- KAKE)
The largest job site, ZipRecruiter, is the most recent business to reduce employment. Additionally, the company will reduce the CEO’s base pay by 30%.
Many businesses are reducing the current number of employees they now have in an effort to cope with their losses as the economic crisis intensifies in various nations.
The same method is also being used by tech companies in a wave of layoffs in the industry. For instance, earlier this year, Amazon laid off more than 18,000 employees. In contrast, Meta let go of 10,000 employees in order to restructure its business model.
The job-searching website ZipRecruiter recently announced that it would lay off 20% of its workforce. According to the reports, this will result in the loss of 270 employees by the end of the month. On May 31, the document describing the layoff was made public.
In the filing, it is stated that “this action was taken in response to current market conditions and following the reduction of other discretionary expenses, with a view to enhancing long-term efficiency.”
According to the business, the affected employees worked in the sales and customer service departments. ZipRecruiter said it will pay between $7 million and $9 million in severance benefits for these workers.
The CEO of ZipRecruiter will also see a pay reduction
Since Bloomberg stated in its report that an executive pay cut would be handed even to ZipRecruiter CEO Ian Siegel, the layoff within the company will not only affect the workers.
The article claims that Siegel consented to the company’s offer to reduce his base pay by 30%. His base pay, according to an earlier filing, is $550,000. The 2022 award was worth twice as much.
Apple’s Tim Cook asserts that mass layoffs are not in the company’s plans and are only a “last resort.”
Reasons ZipRecruiter Made the Decision to Fire Staff
Layoffs in the technology industry are prevalent today for a reason. First, the businesses were unable to keep up with their operating expenses. Second, it’s one of the strategies to survive in the sector in a hard economic climate.
Back in January 2023, ZipRecruiter stated that it has been observing “typical softness in the job posting.” This might be a sign of a slowdown in the labor market, which would support the preliminary revenue projection.
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The projection for Q1 2022 decreased from the forecast for 2023 by 19%. The revenue reduction that began in the second quarter of last year was expected to persist through the current one as well.
It comes as no surprise that more businesses will announce their intentions to perform the ritual of layoffs in the upcoming months. Following the globalization of the economic downturn, job losses have become routine.
Despite the widespread layoffs, it should be remembered that US-based firms are hiring more employees than they are firing.
The monthly National Employment data from ADP indicates the opposite. The private sector employed more people in May, according to the report, by 278,000 jobs.
