LinkedIn’s owner, Microsoft, announced 670 job cuts amid sector challenges.
Microsoft, the parent company of LinkedIn, has revealed a new wave of job cuts affecting approximately 670 positions. These reductions span various departments, including engineering, talent, and finance teams. This move follows LinkedIn’s decision to eliminate 716 jobs in May and aligns with the recent workforce adjustments at several prominent tech companies.
In an announcement posted on LinkedIn, the company acknowledged that managing talent changes is a challenging yet essential part of their ongoing business operations. The latest round of layoffs represents about 3% of LinkedIn’s total workforce, which comprises approximately 20,000 employees.
LinkedIn generates its revenue primarily from job advertisement listings and premium subscriptions, serving as a global platform for recruiters. With approximately 950 million users, it continues to attract new members, although it has faced challenges due to a slowdown in hiring and a decline in advertising spending.
In the fourth quarter of 2023, LinkedIn reported a 5% year-on-year growth in revenue, down from the 10% increase observed in the previous quarter. These challenges in the job market and advertising sector have played a role in necessitating these job cuts.
The broader technology industry has experienced significant workforce reductions since late 2022, with major companies like Amazon, Meta, and Google’s parent company, Alphabet, announcing layoffs. These tech giants have been investing heavily in AI-powered technologies, including projects like ChatGPT (supported by Microsoft) and Bard (owned by Google).
It is noteworthy that LinkedIn’s parent company, Microsoft, had previously disclosed a plan to cut 10,000 jobs in January 2023.
The technology sector in the United States has seen the highest number of job cuts this year, surpassing other industries with over 150,000 layoffs, according to a recent report from the US-based employment consultancy Challenger, Grey & Christmas. The challenges faced by the technology sector underscore the dynamic nature of the industry and the need for continuous adaptation in the face of market shifts and evolving technologies.