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In a move to prioritize key initiatives for 2024, LinkedIn has revealed its third layoff this year, affecting 668 employees. The social media giant, owned by Microsoft, announced the decision on Monday, targeting positions in its engineering, product, talent, and finance teams.
This latest workforce reduction follows a mass layoff earlier in May when 716 jobs were cut, and an undisclosed number of employees from the talent acquisition team were let go in February. LinkedIn defended its decision, stating that talent changes are a necessary part of managing their business.
In an official statement, the company expressed its commitment to supporting impacted employees during this transition and ensuring that they are treated with care and respect. Despite the layoffs, LinkedIn reported a 5% year-over-year increase in revenues in the most recent quarter, marking the first time its revenue surpassed $15 billion this fiscal year. The platform has also maintained eight consecutive quarters of membership growth.
An internal email circulated among employees clarified that the layoffs were aligned with LinkedIn’s long-term business needs, particularly focusing on executing its FY24 plan and prioritizing key initiatives to achieve business goals.
These recent layoffs constitute around 3.5% of LinkedIn’s current workforce, which previously numbered 19,500. It is worth noting that Microsoft, LinkedIn’s parent company, initiated significant layoffs across various divisions in January to improve business agility in response to market fluctuations.
LinkedIn’s move to streamline its operations comes amid a broader trend in the tech industry, where several other companies have announced layoffs this year. Qualcomm, LendingClub, and Flexport are among the tech firms that have taken similar measures to adapt to changing market dynamics and economic uncertainties.
Year to date, over 1,000 tech companies have let go of approximately 242,481 workers, as reported by Layoffs.fyi, highlighting the complex challenges companies face in the evolving business landscape.