LinkedIn Announces Second Round of Layoffs in 2023

Highlights

• LinkedIn, owned by Microsoft, announces a second round of layoffs in 2023, affecting 668 employees in engineering, talent, and finance teams.
• These cuts represent over 3% of LinkedIn’s 20,000-strong workforce.
• The tech sector has seen a surge in job cuts, with 141,516 employees affected in the first half of the year, compared to 6,000 in the previous year.
• LinkedIn’s revenue growth slowed to 5% year-on-year in Q4 2023, down from 10% in the previous quarter.
• Microsoft cites a slowdown in hiring and a decline in ad spending as challenges for LinkedIn.
• Despite this, LinkedIn’s community continues to grow, now with 950 million members worldwide.
• Earlier in May, LinkedIn cut 716 jobs in sales, operations, and support teams to streamline operations.

In a recent development,Microsoft-owned LinkedIn has announced a second round of layoffs for the year, affecting 668 employees across its engineering, talent, and finance departments. This move comes in response to slowing revenue growth and is part of broader restructuring efforts in the technology sector. The layoffs account for over 3% of LinkedIn’s workforce, which currently stands at 20,000 employees.

LinkedIn expressed its commitment to adapt and streamline organizational structures while reaffirming investments in strategic priorities for future growth. The social media platform emphasized its dedication to delivering continued value to both members and customers.

The technology sector has witnessed a significant surge in job cuts, with 141,516 employees affected in the first half of this year, a stark contrast to the approximately 6,000 layoffs recorded in the same period last year, according to employment firm Challenger, Gray & Christmas.

LinkedIn generates revenue through ad sales and subscriptions for recruiting and sales professionals who utilize the platform to connect with potential candidates. In the fourth quarter of fiscal year 2023, LinkedIn‘s revenue saw a 5% year-on-year increase, a slight dip from the 10% growth reported in the previous quarter.

Microsoft attributed LinkedIn’s challenges to a slowdown in hiring activities and a reduction in advertising expenditure. Nevertheless, the platform continues to welcome new members, with its community now boasting 950 million users.

Earlier in May, LinkedIn initiated a round of layoffs, affecting 716 employees in sales, operations, and support teams. This move aimed to streamline operations and facilitate faster decision-making processes.

The uncertain economic outlook has prompted LinkedIn, along with many other tech giants, to reevaluate their structures and make necessary adjustments to adapt to the evolving landscape. As the industry navigates through these challenges, LinkedIn remains committed to its mission of connecting professionals and facilitating meaningful interactions in the global job market.