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LinkedIn Announces Second Round of Job Cuts Amid Slowing Revenue Growth
Updated: Dec 18, 2023
LinkedIn, the popular professional networking platform owned by Microsoft, has announced its second round of job cuts this year.
The company will be laying off 668 employees across its engineering, talent, and finance teams.
This move comes as LinkedIn faces slowing revenue growth and a challenging economic outlook. The layoffs will affect more than 3% of LinkedIn's workforce, which currently stands at 20,000 employees. The technology sector as a whole has experienced significant job losses this year, with over 141,000 employees being laid off in the first half of the year, compared to around 6,000 in the same period last year.
In a blog post, LinkedIn stated, "While we are adapting our organizational structures and streamlining our decision making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers." The company also says that they will remain committed to its long-term goals and providing value to its users.
LinkedIn generates revenue through advertising sales and subscriptions to its recruiting and sales professional services. However, in the fourth quarter of its fiscal year 2023, the company experienced a slower revenue growth rate of 5% compared to 10% in the previous quarter. Microsoft has attributed this slowdown to a decline in hiring and advertising spending.
Despite the job cuts, LinkedIn continues to attract new members, with its community now reaching 950 million users. In May, the company made the decision to cut 716 jobs across its sales, operations, and support teams in an effort to streamline its operations and improve decision-making processes.
LinkedIn is laying off 668 employees in its second round of job cuts this year.
The layoffs affect the engineering, talent, and finance teams.
Slowing revenue growth and an uncertain economic outlook are driving the job cuts.
Source: REUTERS