AUSTIN (KXAN) — Hundreds of Indeed employees are now without a job. Some of them are right here in Austin. The employment company announced mass layoffs on Monday.
Indeed is letting go of roughly 8% of its staff, approximately 1,000 people, according to a letter shared with employees Monday from CEO Chris Hyams.
A competitive market
An Austin man, who asked us to conceal his identity, was once in that same boat. He was part of the company’s layoffs in 2023.
Around this time last year, Indeed laid off about 15% of its staff, citing a decrease of job openings following a recent post-COVID boom.
The man said he was in shock when he got the email. He said no one expected it.
Since getting laid off, he’s been able to spend time pursuing travel and hobbies. However, the stress to find a new job kicked in not too long after.
“As more layoffs were announced from many tech companies, it became apparent quickly that finding a new similar role would be difficult.”
Former Austin Indeed Employee
Since March 2023, he’s been trying to get a position in the tech sector with no luck.
“The market is so competitive that without a referral, the odds of getting the opportunity to interview are very slim,” the man said.
He had this advice for those laid off:
- Work your network for referrals
- Stay frugal with severance
- Be very vigilant about applying to new roles
- Do not spend too much time scrolling LinkedIn
- Have multiple resumes ready for various opportunities
Mass firings after mass hiring
According to a study by the Federal Reserve Bank of Dallas, Austin saw more mass layoffs last year compared to before the pandemic. It was up by more than 14%.
The study said tech downsizing contributed to that.
The layoffs followed a period of time when the tech sector ramped up hiring during the pandemic.
“Some of these companies that may have added additional labor force are now going back and really just course-correcting to the size of the organization,” said Professor at the University of Texas’ LBJ School of Public Affairs Steven Pedigo.
In the letter to employees, Hyams said last year’s layoffs were for cost-saving measures. Even though it worked, he said the company is still not set up for sustainable growth.
“It’s a tough time to be a technology worker right now. You face a real surplus in the labor market.”
Steven Pedigo, UT Professor LBJ School of Public Affairs
Pedigo said even with the layoffs, tech is still one of Austin’s fastest growing industries.
“One of the great things that we could point to in terms of Austin’s technology arena, is that it is becoming a bit more diversified,” Pedigo said. “We’re seeing big investments in Life Sciences, which is a pillar of technology.”
‘Tight right now for the tech industry’
IT Business Consultant at Workforce Solutions Capital Area Katherine Cariño said the industry is not hiring as much at the moment.
“It’s definitely really tight right now for the tech industry. We’re seeing much more limited opportunities available with job postings and employers,” Cariño said. “Basically, it seems like they’re leaning out and trying to do more with less.”
Cariño said there are more job applicants than available jobs.
“Even more joining constantly as people are graduating from school or getting their certifications,” Cariño said. “Then people who are veterans in the industry, who’ve been doing this for years, getting laid off by a company.”
Workforce Solutions Capital Area encourages tech workers to broaden their job search and look at other industries like healthcare or finance.
“Every company is a tech company,” Cariño said. “They’re going to need their help desk people. They’re going to need data analysts, they’re going to need software developers.”
