LinkedIn announces second round of layoffs, affects 668 employees

LinkedIn, a Microsoft-owned professional networking platform, announced on Monday a decision to lay off 668 of its employees, accounting for over 3% of its 20,000-strong workforce. The affected departments include Engineering, Talent, and Finance.

This decision marks the second round of job cuts this year, reflecting the platform's response to slowed revenue growth.

• Layoff Trend: The redundancy is part of a broader trend within the technology sector, which has witnessed vast layoffs of up to 141,516 employees in the first half of the year. This figure starkly contrasts with roughly 6,000 from the same period last year, according to employment firm Challenger, Gray, & Christmas.

• Source of Income: LinkedIn's revenue streams stem from two major sources: advertising sales and subscription fees paid by recruitment and sales professionals who leverage the platform for scouting potential job candidates.

• Revenue Stats: Although Q4 of fiscal 2023 saw a 5% YoY increase in LinkedIn's revenue, it represents a halving of the growth rate from the previous quarter, which boasted a 10% YoY increase.

• Slowing Down: Microsoft attributes LinkedIn's headwinds to a combination of slowed hiring activities and diminished advertising spending, despite the continued growth in platform membership, now standing at 950 million users.

The organization's restructuring and decision streamlining are part of its adaptative measures. "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," LinkedIn stated in a Monday blog post.