Job boards have begun to feel the coronavirus’s impact on hiring. As employers in most sectors of the economy suspend or slow their hiring plans, several have implemented hiring freezes and at least one, ZipRecruiter, has imposed layoffs.
According to media reports, ZipRecruiter began reducing its staff by between 30 and 40 percent on Friday, when employees were told of imminent layoffs and furloughs via Zoom call, said The Wall Street Journal. ZipRecruiter resorted to Zoom because so many employees are working from home, the Journal said.
ZipRecruiter cut workers as customers freeze hiring plans and business uncertainty looms for job boards. #HR #HRTech Click To TweetCompany executives told the newspaper that ZipRecruiter has cash on hand, but it is making layoffs and cutting other costs in order to conserve it. The company’s founders and other executives are reportedly taking pay cuts, and dot.la said monthly expenses have been reduced by some $10 million.
ZipRecruiter’s Leading Indicator
ZipRecruiter had about 1,200 full-time employees before the layoffs. Dot.la said 492 employees lost their jobs, including about 49 who were furloughed with healthcare benefits, apparently because the company hopes to bring them back sooner rather than later. Laid-off workers will receive one month’s pay, three months of healthcare coverage, and an additional two years to exercise any options. The company’s sales team in Tempa, Ariz., was the most impacted. Across the company, dot.la said.
The number of ZipRecruiter job listings has dropped throughout March as large companies cut back their hiring plans. “Our customer base looks like the U.S. economy by size, geography and industry,” the Journal quoted 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.”
A number of ZipRecruiter’s competitors have imposed hiring freezes as the coronavirus pandemic continues. Glassdoor, Indeed and LinkedIn have all suspended hiring, according to a list compiled by Candor. Jobster and Upwork are continuing to hire.
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