Microsoft’s professional networking platform, LinkedIn, has executed a workforce reduction, eliminating 668 positions on Monday. This development escalates the tally of job cuts to 716 for the tech conglomerate in its second round of layoffs this year. The impact of these cuts extends across more than 3% of its robust 20,000-strong workforce, a measure taken in response to sluggish revenue growth in the industry, stemming from the uncertain global economic landscape.
Recent data released by the employment firm Challenger, Gray & Christmas reveals that the technology sector has witnessed a staggering 141,516 employees being let go in the first half of the year. This is in stark contrast to the 6,000 layoffs reported during the same period last year, underscoring the severity of the situation. LinkedIn, a linchpin in Microsoft’s revenue stream, primarily relies on advertising and subscription revenues from recruiting and sales professionals seeking suitable job candidates.
However, the company’s financial performance in the fourth quarter of its fiscal year 2023 only saw a 5% year-on-year growth, a marked decline from the previous quarter’s robust 10% increase. Microsoft attributes this subdued revenue performance to a reduction in hiring and advertising expenditure, consequently leading to a deceleration on the professional networking platform, which boasts a user base of 950 million members.
Employees affiliated with the engineering, talent acquisition, and finance sectors have borne the brunt of the initial wave of job cuts. This decision was made in May, targeting 716 positions across sales, operations, and support teams, in a bid to streamline operations. As a consequence of these layoffs, a substantial number of qualified professionals have been thrust into the competitive job market.
In conclusion, the recent workforce reduction in LinkedIn underscores the challenging economic landscape faced by tech companies, as they grapple with sluggish revenue growth and the need to adapt to industry shifts.
Source: Reuters
