Employment focused social media platform LinkedIn announced another round of layoffs, which will affect 668 employees across engineering, product, talent, and finance teams.
The layoff decision came after the company reported a slow year-over-year revenue growth for eight consecutive quarters.
“Talent changes are a difficult, but necessary and regular part of managing our business. The changes we shared with our team today will result in a reduction of approximately 668 roles across our engineering, product, talent and finance teams,” said linkedIn in its official blog post.
As per Microsoft's quarterly revenue report unveiled in July, the company has encountered a subdued revenue growth, registering only a 5 percent rise during the second quarter. This is noteworthy given the consistent growth in its membership over the past two years. To invigorate its revenue, Microsoft has announced its intention to enhance operational efficiency and give precedence to key initiatives. The recent layoffs at LinkedIn are in harmony with the company's strategy for FY 24.
The recent workforce reductions at LinkedIn, a subsidiary of Microsoft, reflect a larger pattern of job downsizing within the technology industry. This trend is driven by companies dealing with decelerated revenue growth and an unpredictable economic landscape.
“As we continue to execute on our FY24 plan, we need to also evolve how we work and what we prioritise so we can deliver on the key initiatives we’ve identified that will have an outsized impact in achieving our business goalsâ€æ.. This means adapting our organisational structures to improve agility and accountability, establishing unambiguous ownership and driving improved efficiency and transparency through reduced layering.” Mohak Shroff and Tomer Cohen, LinkedIn executives, were quoted as saying in an official memo viewed by CNBC.
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"While we are adapting our organisational 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 added in its blog post.