The social network company has announced that it is reducing jobs within its engineering, talent, and finance teams. This decision follows a previous round of job cuts in May when LinkedIn eliminated 716 positions. It’s worth noting that other major tech companies have also made similar reductions.
LinkedIn Owner, Microsoft Has Announced a Fresh Round of Job Cuts
In a post on the LinkedIn website, the company emphasized that these talent changes, while challenging, are a vital and routine aspect of managing their business. The most recent job cuts amount to roughly 3% of the firm’s workforce, which consists of 20,000 employees.
LinkedIn generates its revenue primarily from job ad listings and premium subscriptions, making it a vital platform for recruiters worldwide. With a user base of approximately 950 million people, it continues to see new members joining its platform.
Linkedin’s Fourth Quarter Revenue Increases by 5%
However, the company has been impacted by a slowdown in hiring and reduced advertising spending. Although they are signing up new members, their fourth-quarter revenue in 2023 increased by 5% year-on-year, down from the 10% growth observed in the previous quarter.
It’s important to note that the technology sector has witnessed a significant number of layoffs since late 2022. Companies like Amazon, Meta, and Google’s parent company, Alphabet, have all downsized their workforce. In January 2023, LinkedIn’s parent company, Microsoft, announced 10,000 redundancies.
These tech giants have been investing heavily in AI-powered technologies like ChatGPT (owned by Microsoft) and Bard (by Google). Despite these investments, the tech sector has reported over 150,000 job cuts this year, making it the industry with the highest number of layoffs, as indicated in a recent report from the US-based employment consultancy, Challenger, Gray & Christmas.