Major player in online recruitment industry takes hit from 'challenging' conditions
CareerBuilder + Monster has announced it has initiated a Chapter 11 bankruptcy process with plans to sell its businesses amid a "challenging" macroeconomic environment.
The Chicago-based company was formed last year from the merger of CareerBuilder and Monster. They were previously regarded as some of the major players in the online recruitment industry.
"For over 25 years, we have been a proud global leader in helping job seekers and companies connect and empower employment across the globe," said Jeff Furman, CEO of CareerBuilder + Monster, in a statement.
"However, like many others in the industry, our business has been affected by a challenging and uncertain macroeconomic environment. In light of these conditions, we ran a robust sale process and carefully evaluated all available options.
"We determined that initiating this court-supervised sale process is the best path toward maximizing the value of our businesses and preserving jobs."
According to the company, it is selling its job board business to JobGet Inc. It is also selling its Monster Media Properties, such as military.com and fastweb.com, to Valnet Inc.
Its Monster Government Services, which provides human capital management software services to state and federal governments, is set to be sold to Valsoft Corporation.
"We determined that initiating this court-supervised sale process is the best path toward maximising the value of our businesses and preserving jobs," Furman said.
The sales will come with restructuring in the US businesses, according to CareerBuilder + Monster, while an evaluation is being carried out for alternatives for its international businesses.
Furman said they are making "difficult but necessary decisions" to reduce costs as they complete the sale process.
"As a company in the business of people and talent management, reducing our workforce is always a painful step to take. I greatly appreciate our people, their contributions to CareerBuilder + Monster and the commitment and passion they have shown to our company, our clients and our colleagues," he said.
