The secondhand trading platform Karrot has decided to minimize new hiring and completely abolish remote work starting in October. The focus has been placed on increasing the productivity of existing staff through the use of artificial intelligence (AI) and in-office work.
According to a report from ChosunBiz on the 27th, last month, Karrot shared with its employees that it aims to either reduce or maintain the total number of staff while minimizing new hiring. The company has decided to reduce the scale of new hires across all departments without distinction. Currently, hiring is underway for financial, marketing, and software engineering positions, but some departments posted job openings without hiring additional staff.
It is reported that management cited AI development as a primary reason. They believe that even without hiring new personnel, productivity can be increased by utilizing AI.
An employee, referred to as A, noted, "Management told employees to be aware of the advancements in AI and to work hard, emphasizing the need to consider efficient ways of working."
There are also analyses suggesting that this decision reflects the characteristics of the domestic labor market, where it is difficult to easily lay off employees as compared to global corporations.
Microsoft and Meta have laid off 6,000 and 3,600 employees, respectively, as they began to fully implement AI. According to Layoffs.fyi, approximately 59,000 employees from the global tech industry were affected by restructuring from January to mid-May this year.
However, in Korea, large-scale layoffs are difficult, and due to the implementation of AI and the economic crisis, the incentives for new hiring have decreased.
Karrot will completely abolish remote work from October. From 2023 until April, the company maintained a system of three days in the office and two days of autonomous work (either remote or in-office), but it reduced autonomous work to one day a week in May and will expand office attendance to all weekdays starting in October.
It is reported that management's intention reflects the belief that productivity can be increased only when employees communicate face-to-face about work.
However, there are growing complaints among employees regarding the increased workload.
Employee B stated, "The abolition of remote work was anticipated, but as resignations continue, the reduction in new hiring has led to complaints about the workload. As the company enters a mature phase, management should propose a new vision rather than just focusing on AI development and utilization, and establish appropriate personnel redistribution and organizational culture."
A representative from Karrot stated, "This is not a freeze or reduction in hiring," but added, "We are considering ways to respond flexibly to rapidly changing technology and market conditions."
Regarding the abolition of remote work, they explained, "As the number of team members gradually increases, we decided to expand office attendance based on the judgment that the advantages of in-office work—such as active and close communication and quick decision-making—are becoming more necessary."