LinkedIn, the world’s largest professional network, has announced another wave of layoffs that will affect 668 employees across its engineering, product, talent, and finance teams. This is the second round of job cuts this year, following the 716 roles that were eliminated in May. The latest layoffs represent over 3% of LinkedIn’s global workforce, which stands at around 20,000.
The reason behind the layoffs is LinkedIn’s slowing revenue growth, which has been declining for eight consecutive quarters. In the second quarter of 2023, LinkedIn’s revenue grew by only 5%, compared to 21% in the same period last year. The company attributed the slowdown to the impact of the COVID-19 pandemic on its core business segments, such as hiring solutions and advertising.
In a memo to employees, LinkedIn executives Mohak Shroff and Tomer Cohen said that the company needs to “evolve how we work and what we prioritize” to deliver on its key initiatives and business goals. They said that the company is “adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership and driving improved efficiency and transparency through reduced layering”.
Despite the layoffs, LinkedIn said that it will continue to invest in strategic priorities for its future and to deliver value for its members and customers. The company also said that it will provide its full support to all impacted employees during this transition and ensure that they are treated with care and respect. LinkedIn said that it will offer severance packages, health insurance continuation, outplacement services, and access to its alumni network to help them find new opportunities.
The layoffs at LinkedIn are part of a broader trend of job cuts in the technology sector amid the economic downturn caused by the pandemic. According to employment tracker Challenger, Gray & Christmas, more than 242,000 people have been laid off in the technology sector in 2023, up from 64,000 in 2022. Some of the major tech companies that have announced layoffs this year include IBM, Cisco, Uber, Airbnb, Groupon, Yelp, and Quora.
As the pandemic continues to disrupt the global economy and labor market, many professionals are turning to LinkedIn to find new opportunities, network with peers, learn new skills, and stay informed about industry trends. LinkedIn said that it has seen a surge in engagement on its platform, with more than 774 million members as of June 2023. The company also said that it has launched several new features and products this year to help its members and customers navigate the changing world of work.
However, as LinkedIn faces increasing competition from other social media platforms, such as Facebook, Twitter, and TikTok, as well as niche professional networks, such as GitHub, Behance, and Dribbble, it will need to innovate and differentiate itself to maintain its leadership position in the market. The recent layoffs may be a sign of LinkedIn’s efforts to streamline its operations and focus on its core strengths. But they may also raise questions about LinkedIn’s future growth prospects and its ability to retain and attract top talent.
Who will be next on LinkedIn’s chopping block? Only time will tell. But one thing is certain: LinkedIn is going through a major transformation that will have significant implications for its employees, members, customers, and competitors.
This post LinkedIn Shakes Up the Workforce: 668 Employees Axed! Find Out Who’s Next! was originally published at Finance Crave
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