LinkedIn axes over 660 employees in second cut this year
Microsoft-owned LinkedIn has announced a second wave of job cuts this year, impacting as many as 668 employees across its engineering, product, talent, and finance teams. The company is adjusting its organizational structures and streamlining decision-making processes while continuing to invest in strategic priorities for the future. "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 said in its announcement.
Tech industry layoffs in 2023
The tech sector has seen a surge in layoffs in 2023, with LinkedIn alone cutting nearly 1,400 jobs this year. Microsoft, which recently acquired Activision Blizzard for $68.7 billion, laid off around 10,000 workers in the first few months of the year. Employment firm Challenger, Gray & Christmas reported that the tech sector laid off a total of 1,41,516 employees in the first half of the year compared to about 6,000 a year ago.
LinkedIn's performance and membership growth
In Microsoft's latest earnings report (covering April to June), LinkedIn's earnings rose by 5% year-over-year. The company emphasized that membership growth had accelerated for eight consecutive quarters, with the platform now boasting over 950 million users. Microsoft is set to announce financial results for the July-September period, the first quarter of its fiscal year, on October 24.
Previous layoffs and future outlook
Back in May, LinkedIn disclosed plans to lay off 716 people and shut down its job search app in China. The company generates revenue through ad sales and charging subscriptions for recruiting and sales professionals who use the network to find suitable job candidates. Despite facing challenges such as a slowdown in hiring and a decline in advertising spending, LinkedIn remains focused on adding new members to its community of 950 million users.
