Microsoft’s LinkedIn has announced plans to lay off 668 employees across its engineering, talent, and finance teams.
This decision comes as the social media network for professionals grapples with declining revenue growth, a challenge that has also swept through the tech sector, leading to tens of thousands of job losses.
This latest downsizing, which affects over 3% of LinkedIn’s 20,000-strong workforce, signifies a broader trend within the industry.
LinkedIn responded by emphasizing its commitment to maintaining value for members and customers while streamlining its organizational structures.
The tech sector, which has seen a dramatic increase in layoffs, has been significantly affected by economic uncertainty, reflecting a total of 141,516 job cuts in the first half of the year, as reported by Challenger, Gray & Christmas, compared to just 6,000 the previous year.
Despite these challenges, LinkedIn remains a giant in the professional networking world, boasting 950 million members. The company continues to derive revenue from advertising and subscriptions, catering to recruiting and sales professionals.
However, the recent 5% year-on-year revenue increase in the fourth quarter of fiscal 2023 reveals a slowdown compared to the previous quarter’s 10% growth. Microsoft attributes this to decreased hiring and a dip in advertising spending.
LinkedIn’s recent restructuring initiatives aim to address these challenges, demonstrating the network’s determination to navigate the choppy waters of the ever-evolving tech landscape.
