Recruit Holdings (6098.T), the Japanese parent company of Indeed and Glassdoor, is set to cut around 1,300 jobs across both platforms as it shifts focus toward artificial intelligence, according to an internal memo seen by Reuters. The layoffs, which account for about 6% of the HR technology division, will primarily impact employees in the U.S. and affect teams such as R&D, growth, and people and sustainability. However, all departments and multiple countries will be affected.

Although no exact reason was cited for the cuts, Recruit CEO Hisayuki “Deko” Idekoba noted that AI is transforming the industry, and the company must evolve to provide better experiences for both job seekers and employers. This move follows a broader trend, as U.S. tech firms like Meta and Microsoft have also made workforce reductions to focus more heavily on AI and manage economic slowdowns.

As part of the restructuring, Recruit will merge Glassdoor’s operations into Indeed. Consequently, Glassdoor CEO Christian Sutherland-Wong will leave the company on October 1. Additionally, LaFawn Davis, Indeed’s Chief People and Sustainability Officer, will step down on September 1, with Ayano Senaha, Recruit’s COO, stepping into the role. Recruit, which bought Indeed in 2012 and Glassdoor in 2018, currently employs around 20,000 people in its HR tech unit. Earlier in 2024, Indeed announced 1,000 job cuts, following a 2023 move to slash 2,200 roles—15% of its workforce.