This year’s second round of layoffs at Microsoft-owned professional social networking network LinkedIn is expected to affect 668 positions in the engineering, talent, and finance departments. This action, which will impact more than 3% of its 20,000 employees, is a reaction to the company’s declining sales growth. This year has seen a significant rise in employment losses in the IT industry as a result of economic uncertainties. LinkedIn highlights its dedication to investing in strategic goals and providing value to its users and customers, even in the wake of these layoffs.
According to employment company Challenger, Gray & Christmas, there have been 141,516 job layoffs in the IT industry in the first half of this year, a considerable increase from about 6,000 in the previous year. Sales of advertisements and membership fees from sales and recruiting specialists are how LinkedIn makes money. The fourth quarter of fiscal 2023 had a 5% year-over-year gain in revenue, down from 10% in the prior quarter.
Microsoft blames a slowdown in recruiting and lower advertising spending for LinkedIn’s problems. 950 million people currently make up the platform’s community, which is continually growing. In an attempt to improve decision-making efficiency and streamline operations, LinkedIn announced in May that 716 positions in sales, operations, and support teams will be eliminated.