Last Updated on October 17, 2023 by Robert C. Hoopes
Microsoft’s professional social media network, LinkedIn, has announced plans to lay off 668 employees across its engineering, talent, and finance teams. The job cuts represent more than 3% of LinkedIn’s 20,000-strong staff, highlighting the challenges the company faces as revenue growth slows.
This is the second round of job cuts for LinkedIn this year, reflecting the uncertain economic outlook that has led to thousands of tech sector job losses in 2021. Despite these challenges, LinkedIn remains committed to investing in strategic priorities and delivering value for its members and customers.
The tech sector has been hit hard this year, with a significant increase in layoffs. In the first half of the year alone, the industry has already laid off 141,516 employees, compared to around 6,000 job losses in the same period last year. As one of the major players in this sector, LinkedIn’s job cuts add to the growing number of unemployed tech professionals.
LinkedIn generates revenue through advertising sales and subscriptions for recruiting and sales professionals. However, the slowdown in hiring and advertising spending has been attributed as challenges for LinkedIn by its parent company, Microsoft. Despite adding new members to its 950 million community, the company’s Q4 revenue in fiscal year 2023 increased by only 5% year-on-year, compared to 10% in the previous quarter.
To streamline operations and facilitate quicker decision-making, LinkedIn previously cut 716 jobs in May. The aim was to remove layers within the company and create a more efficient structure. However, it seems that the challenges in the market have prompted further cuts to help LinkedIn weather the storm and remain competitive.
While this news may be concerning for those affected by the layoffs, it is important to note that LinkedIn remains committed to investing in its core areas of focus. As the company continues to adapt to the changing market conditions, it will be interesting to see how it navigates the challenges and positions itself for future growth.