LinkedIn is reducing its workforce by nearly 700 employees. Revenue growth for LinkedIn has decelerated over eight consecutive quarters. Most layoffs are from the core engineering group; finance and HR also affected. Amidst these reductions, LinkedIn is looking to hire more in India.

LinkedIn Layoffs Include Nearly 700 Jobs, Citing Slowing Revenue Growth

October 16, 2023

CNBC

Key Points:

  • LinkedIn is reducing its workforce by nearly 700 employees.
  • Revenue growth for LinkedIn has decelerated over eight consecutive quarters.
  • Most layoffs are from the core engineering group; finance and HR also affected.
  • Amidst these reductions, LinkedIn is looking to hire more in India.

In a significant move, Microsoft-owned LinkedIn has confirmed the layoff of almost 700 of its employees, largely targeting the company’s engineering sector. This revelation came from an internal memo obtained and reviewed. Beyond engineering, the layoffs have also reached the finance and human resources departments, revealed an unnamed source.

This workforce reduction follows a concerning trend for the business networking giant: revenue growth has decelerated for eight straight quarters. Despite a robust 5% growth in Q2 and consistent membership augmentation over the past two years, the platform’s revenue momentum seems to be waning.

LinkedIn executives, Mohak Shroff and Tomer Cohen, in the memo, stated, “As we continue to execute on our FY24 plan, we need to also evolve how we work… to improve agility and accountability… and driving improved efficiency and transparency through reduced layering.”

The recent cuts can be seen in light of Microsoft’s broader strategy, with the tech behemoth announcing a reduction of 10,000 roles earlier this January, followed by more in July. In a bid to curtail expenses, Satya Nadella, Microsoft’s CEO, has been steering the company towards cost-cutting measures.

It’s worth noting that these layoffs are over and above the 10,000 jobs Microsoft previously announced. Interestingly, despite the job cuts, LinkedIn seems to be focusing its hiring efforts in India, offering a hint towards the company’s strategic direction.

Reassuringly, LinkedIn expressed its commitment in a blog post, stating, “We are continuing to invest in strategic priorities… to deliver value for our members and customers.” The company emphasized its dedication to assisting affected employees, promising to ensure they are treated with “care and respect.”

The layoffs had earlier caught the attention of global news agency Reuters, which had reported on them.

Recent News

Google’s Antitrust Trial Teeters On

Google’s landmark antitrust case against the Justice Department has reached its final stage, sparking concern across Silicon Valley. Prosecutors argue that Google’s dominance in online search and search advertising markets is illegal, while Google maintains its superiority. The outcome, to be decided by US District Judge Amit Mehta, could have significant implications not only for Google but also for other tech giants like Apple, Amazon, and Meta.

Apple’s Vision Pro Headset Dominates Enterprise Market

Apple’s Vision Pro headset, a mixed-reality spatial computing device, has found its way into the arsenals of more than half of the Fortune 100 companies, with over 50% investing in at least one unit. This revelation came during Apple’s first quarter 2024 earnings call, where CEO Tim Cook highlighted the enthusiastic reception of their products within the corporate sector.