Microsoft-owned social network LinkedIn has announced a new round of job cuts, affecting approximately 670 roles. The job cuts will impact LinkedIn’s engineering, talent, and finance teams. This comes after LinkedIn eliminated 716 jobs in May and follows similar workforce reductions at other major tech companies.
LinkedIn characterized these layoffs as a necessary and regular part of business management. The latest job cuts represent about 3% of the company’s total workforce of 20,000 employees.
LinkedIn generates revenue primarily through job ad listings and premium subscriptions and is widely used by recruiters worldwide. The company has approximately 950 million users. However, a slowdown in hiring and a decrease in advertising spending have affected its financial performance. In the fourth quarter of 2023, LinkedIn’s revenue increased by 5% year-on-year, down from 10% in the previous quarter.
In recent years, there have been tens of thousands of job layoffs in the technology sector, with companies like Amazon, Meta, and Google’s parent company Alphabet implementing workforce reductions. These firms have also heavily invested in AI-powered technology, contributing to a changing employment landscape in the tech industry. According to a recent report from US-based employment consultancy Challenger, Gray & Christmas, the technology sector has announced over 150,000 job cuts this year, more than any other sector in the US.