“Only 5% growth in the last 2 quarters”
LinkedIn, a business social platform owned by Microsoft (MS), announced on the 16th (local time) that it would lay off 668 employees.
According to CNBC and CNN Business, LinkedIn announced that it would restructure personnel across company departments, including engineering and finance. This number represents approximately 3% of LinkedIn’s total 19,500 employees.
CNBC reported that LinkedIn’s year-over-year sales growth has slowed for eight consecutive quarters. Previously, Microsoft revealed that although LinkedIn’s membership had increased over the past two years, it only grew by 5% in the second quarter. It is also reported that LinkedIn is currently increasing hiring in India.
“We will adjust our organizational structure and streamline decision-making while continuing to invest in strategic priorities for the future and deliver continued value to our members and customers,” LinkedIn said.
CNN Business also reported that LinkedIn has recently been making significant investments in artificial intelligence (AI).
Previously, LinkedIn laid off 716 people in May and terminated its service in China. CEO Ryan Roslansky said in a message to employees at the time that the decision was made amid changing customer behavior and slowing sales growth.
However, CNN Business reported that LinkedIn is continuing to grow financially.
In its recent earnings announcement, LinkedIn announced that its sales exceeded $15 billion (approximately 20 trillion won) for the first time in fiscal year 2023 (October 2022 to September 2023), and that membership growth continued for eight consecutive quarters. It is reported that the number of LinkedIn users increased significantly last year following a wave of mass layoffs at big American tech companies such as Amazon and Meta.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.