LinkedIn Layoffs 2023: Five months after announcing they'd cut 716 jobs, LinkedIn, which is owned by Microsoft, has now said they'll be giving pink slips to 668 more employees.
The company conveyed this news to its workforce via an email on Monday morning, explaining that these changes are part of a broader reorganization aimed at enhancing agility and accountability within the organization.
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Reports indicate that these layoffs touch various areas, including engineering, talent, and finance teams, marking the second round of job cuts within the same year. These measures come in response to slowing revenue growth, a concern shared by many companies in the tech industry.
These job cuts impact slightly over 3% of LinkedIn's workforce, which comprises around 20,000 employees. This move adds to the broader trend of job losses seen throughout the technology sector in response to an uncertain economic outlook.
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In a broader context, Microsoft had previously announced its intentions to reduce its workforce, with an initial cut of 10,000 employees in January, followed by additional reductions in July. This streamlining approach aligns with Microsoft's efforts to manage costs as its overall revenue growth faces challenges.
LinkedIn's latest job cuts come in the wake of eight consecutive quarters of slow year-over-year revenue growth. Microsoft's quarterly revenue report, issued in July, revealed a modest 5 percent increase in the second quarter, despite a consistent increase in membership over the past two years.
To address these concerns and bolster revenue, Microsoft has outlined its commitment to enhancing operations and prioritizing key initiatives. The recent layoffs at LinkedIn align with the company's plan for fiscal year 2024.