LinkedIn becomes latest tech company to conduct layoffs

2023-10-17 04:56

LinkedIn, the business-focused social media platform owned by Microsoft, announced on Monday it would be reducing its workforce by approximately 668, becoming the latest tech company to conduct mass layoffs. “Talent changes are a difficult, but necessary and regular part of managing our business,” the company wrote in a blog post adding that the changes were a result of adapting organisational structures and streamlining decision-making. The company said the roles being cut span across engineering, product, talent and finance teams. “We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect,” LinkedIn wrote. This round of layoffs comes just months after LinkedIn laid off 716 employees in May citing a change in their Global Business Organization. In the first half of this year, tech companies like Microsoft, Google, Meta and Amazon saw massive layoffs in part because the sector struggled to keep up with salary maintenance while revenue slowed down. In January, Microsoft announced it would be reducing its workforce by 10,000 following a report showing company growth was at its slowest in six years. Part of that included advertising revenue that performed worse than expected. Microsoft’s advertising revenue partially comes from LinkedIn which makes money from ads on the platform in addition to users who pay a premium membership subscription fee. Though LinkedIn saw revenue and website membership growth over the last year, it is slower than in previous years. In Q4 of 2023, the company’s revenue increased 5 per cent year-on-year – a drop from the previous quarter at 10 per cent. The company also laid off 716 workers in May, after growing massively during the pandemic. Around 40% of LinkedIn’s almost 20,000 workers were hired during the pandemic. The cuts affect approximately 3 per cent of the total workforce at LinkedIn. The company has an estimated 21,000 employees – around 40 per cent of those workers were hired during the pandemic, according to The San Francisco Chronicle. Read More Who is hit hardest by Big Tech job cuts? Cooks and janitors Microsoft spent two years trying to buy Activision Blizzard. For Xbox CEO, that was the easy part IRS says Microsoft may owe more than $29 billion in back taxes; Microsoft disagrees

LinkedIn becomes latest tech company to conduct layoffs

“Talent changes are a difficult, but necessary and regular part of managing our business,” the company wrote in a blog post adding that the changes were a result of adapting organisational structures and streamlining decision-making.

The company said the roles being cut span across engineering, product, talent and finance teams.

“We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect,” LinkedIn wrote.

This round of layoffs comes just months after LinkedIn laid off 716 employees in May citing a change in their Global Business Organization.

In the first half of this year, tech companies like Microsoft, Google, Meta and Amazon saw massive layoffs in part because the sector struggled to keep up with salary maintenance while revenue slowed down.

In January, Microsoft announced it would be reducing its workforce by 10,000 following a report showing company growth was at its slowest in six years. Part of that included advertising revenue that performed worse than expected.

Microsoft’s advertising revenue partially comes from LinkedIn which makes money from ads on the platform in addition to users who pay a premium membership subscription fee.

Though LinkedIn saw revenue and website membership growth over the last year, it is slower than in previous years. In Q4 of 2023, the company’s revenue increased 5 per cent year-on-year – a drop from the previous quarter at 10 per cent.

The company also laid off 716 workers in May, after growing massively during the pandemic. Around 40% of LinkedIn’s almost 20,000 workers were hired during the pandemic.

The cuts affect approximately 3 per cent of the total workforce at LinkedIn. The company has an estimated 21,000 employees – around 40 per cent of those workers were hired during the pandemic, according to The San Francisco Chronicle.

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IRS says Microsoft may owe more than $29 billion in back taxes; Microsoft disagrees