ZipRecruiter said it plans to cut its workforce by about 20% as it reduces spending due to current conditions in the employment market.
The Santa Monica, California ‘matchmaking’ recruitment site will reduce its global headcount by around 270 employees, it said in a filing to the US Securities and Exchange Commission.
The move comes after it reduced other discretionary expenses, the company said, adding that it expects to complete substantially all of the headcount reduction by the end of June 2023.
“By streamlining its organization and optimizing its cost structure, the Company believes it can execute faster with increased focus on its top priorities and long-term strategic growth objectives, including continued development of its technology roadmap,” ZipRecruiter said in the SEC filing.
It also agreed that CEO Ian Siegel will receive a reduction of 30% of his base salary, effective immediately.
As a result of the headcount reduction, ZipRecruiter estimates that it will incur a pre-tax charge in the range of $7 million to $9 million during the fiscal quarter ending June 30, 2023, consisting of one-time severance and other termination benefit costs.
It reaffirmed its adjusted EBITDA (underlying earnings) guidance of between $178 million and $192 million for the year ending December 31, 2023, and its revenue guidance of between $167 million and $173 million for the second quarter of 2023.
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