Job site giant ZipRecruiter is the latest company to cut its workforce. The firm will also slash the CEO's base salary by 30%.
ZipRecruiter Layoffs 20% of its Total Workforce
Job site giant ZipRecruiter is the latest company to cut its workforce. The firm will also slash the CEO's base salary by 30%.
As the economic downturn worsens in some countries, many companies are downsizing the current number of their employees in hopes of coping with their losses.
In a series of tech layoffs, tech giants are also resorting to the same mechanism. Amazon, for instance, has terminated more than 18,000 workers earlier this year. Meta, on the other hand, laid off 10,000 staff members to reorganize its strategies.
Recently, job-hunting platform ZipRecruiter announced that it would ax 20% of its labor force. This means that about 270 employees will lose their jobs by the end of the month, according to CNN. The filing about the layoff was disclosed last Wednesday, May 31.
"This action was taken in response to current market conditions and after reducing other discretionary expenses, with a view toward driving long-term efficiency," the filing says.
The company says that the affected employees came from the customer support and sales division. ZipRecruiter adds will cover the severance costs for these individuals amounting to between $7 million and $ 9 million.
ZipRecruiter CEO Will Also Receive a Salary Cut
The layoff inside the company will not only affect the workers since Bloomberg said in its report that an executive pay cut would be issued even to ZipRecruiter CEO Ian Siegel.
According to the publication, Siegel agreed to the deal with the company to slash his base salary by 30%. The earlier filing suggests that his base salary is $550,000. The 2022 compensation was double its amount.
Related Article: Apple's Tim Cook Claims that Mass Layoffs are Not In its Plans, Only a 'Last Resort'
Why ZipRecruiter Decided to Layoff its Employees
There's a reason why tech layoffs are the trend nowadays. First, the firms could not manage to sustain their operational costs. Second, the economy has been challenging, and it's one of the ways to stay afloat in the industry.
ZipRecruiter mentioned back in January 2023 that it's been experiencing "typical softness in the job posting." This could indicate that there's a slowdown in the labor market, which corroborates the early revenue forecast.
The forecast for Q1 2022 fell to 19% from 2023's forecast. Additionally, it was also projected that the second-quarter decline in revenue last year would continue until the current quarter.
It's no surprise that in the coming months, more companies will announce their plans to do the layoff rituals. The job cuts have been normalized after the economic downturn took over globally.
Despite the layoffs everywhere, it should be noted that more people are being hired than getting kicked by US-based employers.
The ADP's monthly National Employment report says otherwise. The May data saw an increase in private sector employment by 278,000 jobs.
Read Also: Adobe Opens New Office Building, Says No Layoffs in 2023
