LinkedIn Layoff: Around 668 Employees To Lose Jobs In Face Of Slow Revenue Growth

Microsoft-owned LinkedIn has said that it would lay off 668 employees across its engineering, talent, and finance teams in the second round of job cuts this year for the employment-focused social media platform amid slowing revenue growth, Reuters reported on Monday.

The job cuts, which affect over 3% of the 20,000-strong staff, add to the tens of thousands of job losses this year in the technology sector in view of an uncertain economic outlook.

The tech sector has retrenched 141,516 employees in the initial half of the year compared with about 6,000 a year earlier, according to employment firm Challenger, Gray & Christmas.

In its October 2023 Update, LinkedIn said "Talent changes are a difficult, but necessary and regular part of managing our business. The changes we shared with our team today will result in a reduction of approximately 668 roles across our engineering, product, talent, and finance teams."

"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. 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," it added.

LinkedIn which is a social media network for professionals makes money through ad sales and by charging for subscriptions to recruiting and sales professionals who use the platform to find suitable job candidates.
In the fourth quarter of its fiscal 2023 year, LinkedIn's revenue rose 5% year-on-year (YoY), compared to 10% in the previous quarter.

Tech giant Microsoft has cited a slowdown in hiring along with a decline in advertising spending as headwinds for LinkedIn.

Earlier, in May LinkedIn decided to cut 716 jobs across sales, operations, and support teams to streamline its operations and remove layers to help make quicker decisions.

In January Microsoft announced that it would let go of 10,000 employees, and additional ones following in July. The trimming down comes as Microsoft's overall revenue growth declined, pushing CEO Satya Nadella to cut costs across the company.