Microsoft-owned LinkedIn announced on Monday that it will lay off approximately 668 employees, representing 3% of its global workforce. The job cuts will impact various teams including engineering, product, talent, and finance across the company's 36 global offices. The company cited streamlining decision-making processes as the reason for the layoffs but did not provide further details.
This announcement follows a previous round of layoffs in May 2023, which saw the departure of 716 staff due to a contraction in LinkedIn's China business amid an uncertain job market. At the time, CEO Ryan Roslansky pointed to shifts in customer behavior and slower revenue growth.
The move by LinkedIn is not isolated, as the tech industry has seen significant downsizing in 2023. Tech giants such as Google (NASDAQ:GOOGL), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN) have also reduced their workforces this year. Microsoft (NASDAQ:MSFT) itself laid off 10,000 employees earlier in the year. According to Layoffs.fyi, over 200,000 tech employees have been laid off in 2023.
Despite the recent layoffs, LinkedIn has seen continued growth in its user base for eight consecutive quarters, reaching 950 million users. Its second-quarter revenue rose by 5%, with annual revenue surpassing $15 billion for the first time. This growth was primarily driven by its recruiting business.
In addition to its financial success, LinkedIn recently launched a suite of AI-powered tools aimed at enhancing marketing, recruiting, and sales operations. These new additions reflect the company's ongoing efforts to innovate and adapt despite the current challenges in the tech industry.
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