Hundreds of Engineers Affected by LinkedIn’s Second Round of Layoffs in 2023
(Reuters) – Microsoft’s LinkedIn said on Monday it would cut 668 jobs from its engineering, talent and finance teams in the professional social media network’s second round of layoffs this year as revenue growth slowed.
The cuts, which affect more than three percent of 20,000 employees, add to tens of thousands of job losses this year in the technology sector amid an uncertain economic outlook.
“As we adapt our organizational structures and streamline our decision-making, we will continue to invest in our future strategic priorities and ensure we continue to deliver value to our members and customers,” LinkedIn said in a blog post Monday.
Employment agency Challenger, Gray & Christmas laid off 141,516 employees in the technology sector in the first half of the year, while the corresponding number a year earlier was around 6,000.
LinkedIn earns money by selling advertising and invoicing subscriptions to recruiting and sales professionals who use the network to find suitable job candidates.
In the last quarter of fiscal year 2023, LinkedIn’s net sales grew by 5% compared to the corresponding period of the previous year, while it was 10% in the previous quarter.
Microsoft has cited a slowdown in hiring and falling advertising spending as a headwind for LinkedIn, even as it continues to add new members to its 950 million community.
In May, LinkedIn decided to cut 716 jobs in its sales, operations and support teams to streamline operations and eliminate layers to speed up decision-making.
