Greenhouse Software will lay off about 120 employees, or 28 percent of its workforce, as its business feels the impact of the coronavirus.
Since the end of March, several recruiting technology companies have reduced their headcount as the economy staggers under the weight of massive layoffs and plunging revenue. About 22 million Americans have filed for unemployment claims in the last month, and businesses in almost all sectors have been forced to close. Both manufacturing and new home construction have dropped precipitously.
.@Greenhouse will lay off about 120 employees, or 28 percent of its workforce, as its business feels the impact of the #coronavirus #HR #HRTech Click To TweetGreenhouse’s layoffs will be focused on its sales and marketing teams, wrote CEO Daniel Chait in a blog post. That will allow the company to “[preserve] capacity in customer success, account management, support and R&D,” he explained.
Affected workers will receive eight weeks of severance and eight months of healthcare coverage. “Were it not for COVID-19, we would not need to say goodbye to any of our amazing team members,” Chiat said.
Employers Continue to Consider Talent Needs
Greenhouse isn’t the first recruiting technology company to feel the pandemic’s economic strain. On April 9, Business Insider reported that Lever would lay off 40 percent of its workforce, or about 109 employees.
At the end of March, ZipRecruiter reduced its staff by more than 30 percent. The company, which had about 1,200 employees before the layoffs, said it made the cuts in order to preserve cash.
“Our customer base looks like the U.S. economy by size, geography and industry,” The Wall Street Journal quoted ZipRecruiter CEO Ian Siegel as saying. “The U.S. economy is hurting and we regretfully have to do what is necessary to make sure we are there for the great American comeback story to come.”
CareerBuilder, Glassdoor, Indeed and LinkedIn have all suspended hiring, according to a list compiled by Candor. Jobster and Upwork continue to hire. By Candor’s figures, 32 percent of companies involved in staffing and recruiting have either frozen hiring or imposed layoffs, making it one of the least-impacted verticals in business.
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