LinkedIn, the world’s biggest professional networking platform and job portal, is cutting 3% of its workforce from product, engineering, talent, and finance departments, affecting roughly 668 employees, according to its recent announcement. The layoff announcement is the result of the company’s current steady YoY revenue growth continuously for eight quarters.
As per the quarterly revenue report of Microsoft released in July, the firm has been experiencing slow revenue growth which is 5% for the second quarter. However, the membership count has been increasing constantly for the past two years. The LinkedIn job cuts are in line with the firm’s FY 24 strategy.
“In Q4, LinkedIn’s revenue increased 5% year-over-year (7% in constant currency),” reveals LinkedIn’s official blog post.
“Talent changes are a difficult, but necessary and regular part of managing our business. The changes we shared with our team today will result in a reduction of approximately 668 roles across our engineering, product, talent, and finance teams,” stated LinkedIn’s official blog post.
The blog post further clarifies, “While we are adapting our organizational structures and streamlining our decision-making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers. We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect.”
The tech industry has witnessed widespread job cuts in recent months, leaving tens of thousands of workers affected. Amazon, Google, and Meta are among the companies that have announced workforce reductions, preparing for a possible economic downturn or recession.