Microsoft, the parent organization of LinkedIn, has declared a new wave of job reductions affecting around 670 positions.
LinkedIn generates revenue primarily through job ad listings and premium subscriptions, serving as a critical platform for recruiters worldwide. The platform boasts about 950 million users.
Now, these layoffs are spread across various teams within the company, including engineering, talent, and finance.
Previously in May, LinkedIn had already laid off 716 jobs, and this recent move aligns with similar workforce reductions observed in major tech firms.
In a post on the LinkedIn website, the company acknowledged that “Talent changes are a difficult, but necessary and regular part of managing our business.”
The most recent job cuts represent approximately 3% of the company’s total workforce of 20,000 employees.
A slowdown in hiring and a decline in advertising spending have impacted the company, although it continues to onboard new members. In the fourth quarter of 2023, the company’s revenue saw a 5% year-on-year increase, down from the 10% reported in the previous quarter.
The technology sector, including major companies like Amazon, Meta, and Alphabet (Google’s parent company), has witnessed a substantial number of layoffs since late 2022. LinkedIn’s parent company, Microsoft, had announced 10,000 redundancies in January 2023.
These tech companies have been heavily investing in AI-powered technology, leveraging tools like ChatGPT (owned by Microsoft) and Bard (by Google).
The technology sector in the US has reported the highest number of job cuts this year, exceeding 150,000 layoffs, as per a recent report from US-based employment consultancy Challenger, Gray & Christmas.
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