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Los Angeles
March 29, 2020
June 14, 2024

ZipRecruiter Layoffs: What Happened & Why?

In March 2020, online-hiring marketplace ZipRecruiter faced the harsh reality of the coronavirus pandemic's impact on the hiring industry, resulting in the company downsizing roughly a third of its staff. As we dive into what happened and why, we'll also explore the potential future impact of these layoffs on both the company and the industry as a whole.

Why did ZipRecruiter have layoffs?

ZipRecruiter's decision to downsize its staff by roughly a third was primarily influenced by the economic pressures of the coronavirus pandemic. As the pandemic reduced hiring activity, many employers scaled back their operations, which impacted ZipRecruiter's revenue streams. In response, the company's co-founder and CEO, Ian Siegel, along with other executives, took pay cuts to help ease the financial strain. While the decrease in hiring activity reflects a shift in industry demands, broader economic trends related to the pandemic have played a significant role in reshaping the hiring landscape and affecting companies like ZipRecruiter.

Financial Impact and Future Directions

Evaluating the financial impact of the layoffs at ZipRecruiter involves considering the broader economic conditions and their effects on the company’s operations and strategy. These layoffs were part of a strategic realignment focusing on sustainability and efficiency in a challenging economic environment. While the financial details of these changes are intricate, they are aimed at stabilizing the company’s financial health and adapting to the evolving market demands.

Impact on Industry

The downsizing at ZipRecruiter due to the pandemic is indicative of broader trends within the recruiting industry, where companies are compelled to adapt to significant drops in revenue by adjusting their workforce. Although the specific scale of the layoffs at ZipRecruiter is reflective of severe market conditions, such steps are critical for the company to navigate through these turbulent times and could lead to new approaches in the industry.


ZipRecruiter reduced its workforce by a third as a direct response to the diminished hiring activity and revenue challenges brought by the pandemic. The executive team's pay cuts were part of efforts to lessen financial hardships. These measures, while substantial, underscore a potential shift in the recruiting industry, with long-term implications for ZipRecruiter’s position and the broader market. The company’s subsequent strategies will likely illustrate further adaptations to this dynamic environment.