LinkedIn, the professional social networking platform owned by Microsoft, is announcing a significant reduction in its workforce, with approximately 668 job cuts.
This move represents roughly 3 percent of its employees and comes as the company's second round of layoffs in 2023.
In May, LinkedIn laid off 716 employees globally, citing diminishing demand in a volatile job market and a downsizing of its operations in China.
Reasons Behind the Layoffs Remain Unspecified
LinkedIn, which currently employs 19,500 individuals across 36 offices worldwide, has not disclosed specific reasons for these job cuts. In an official statement, the company mentioned its intent to "streamline decision-making" while continuing to invest in strategic priorities. LinkedIn declined to provide further comments beyond this statement. In May, the company's CEO, Ryan Roslansky, noted shifts in customer behaviour and slower revenue growth.
Tech Industry's Workforce Reduction Trend
This latest announcement from LinkedIn falls in line with the broader trend in the tech industry, where major players like Google, Meta (formerly Facebook), Amazon, and Microsoft have been cutting their workforces after rapid expansion during the pandemic. Microsoft, for instance, had reduced its workforce by 10,000 employees (less than 5 percent) in January to refocus on areas such as artificial intelligence. In 2023, over 200,000 tech employees have been laid off, according to the layoff tracker, Layoffs.fyi.
Despite the layoffs, LinkedIn reported a 5 percent revenue growth for the second quarter of the year, surpassing $15 billion in annual revenue for the first time, largely attributed to its recruiting business. The platform, boasting 950 million users, has seen consistent user growth over the past eight quarters. Furthermore, LinkedIn has been actively investing in artificial intelligence, recently unveiling a suite of AI-powered products to enhance its marketing, recruiting, and sales capabilities.
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