LinkedIn Announces Second Round of Layoffs, Letting Go of 668 Employees
LinkedIn has announced a second wave of layoffs this year, affecting 668 employees within its engineering, talent, and finance departments. This decision comes as the professional social media network grapples with slowing revenue growth.
These layoffs impact slightly over 3% of LinkedIn's workforce, which comprises 20,000 employees. They contribute to the broader trend of job losses in the technology sector, which has seen tens of thousands of employees being let go this year due to economic uncertainties.
LinkedIn, in a blog post, explained that while they are restructuring their organizational framework and optimizing decision-making processes, they remain committed to investing in strategic priorities that will shape their future and continue providing value to their members and customers.
The technology sector has witnessed substantial layoffs, with 141,516 employees losing their jobs in the first half of the year, a significant increase compared to approximately 6,000 job cuts in the same period the previous year. LinkedIn generates revenue through advertising sales and by charging fees for subscriptions to recruitment and sales professionals who use the platform to identify potential job candidates.
In LinkedIn's fiscal Q4 2023, their revenue increased by 5% year-on-year, a decline from the 10% growth recorded in the preceding quarter. Microsoft, which owns LinkedIn, has identified a reduction in hiring activities and a decrease in advertising expenditures as challenges for the platform. However, LinkedIn continues to expand its community, boasting 950 million members.
In May, LinkedIn initiated the first wave of job cuts, affecting 716 positions in sales, operations, and support teams. The primary objective of these layoffs was to streamline operations, remove bureaucratic layers, and facilitate quicker decision-making processes.