LinkedIn will lay off some 960 employees, or about 6% of its workforce, because of faltering demand for its recruitment services. The job cuts will be made across the company’s global sales and talent acquisition teams, the company said.
“LinkedIn is not immune to the effects of the global pandemic,” wrote CEO Ryan Roslansky in a blog post. “Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously.” He added no further layoffs are planned.Declining job postings force @LinkedIn to reduce workforce by 6%, retool to focus on "strategic priorities." No further layoffs planned. #HR #HRTech Click To Tweet
Roslansky said LinkedIn must focus on strategic priorities, and that as executives review its operations, they determined that a number of roles are no longer needed either because of duplication or a change in approach. For example, the company currently supports separate talent media businesses, which will be unified on one platform. It also plans to support SMB customers online rather through field sales teams.
LinkedIn has undertaken a “very substantial product investment” to serve SMBs through an online storefront. “This online channel approach will allow us to better serve the millions of small businesses that will need LinkedIn through this pandemic and beyond—and aligns with how we plan to focus our field sales efforts on our higher value relationships,” Roslansky said.
Affected employees will be notified in the coming days, depending on where they’re located. Those in North America, Brazil and parts of APAC will be told within 24 hours. They’ll receive at least 10 weeks of severance pay, 12 months of health insurance, and outplacement assistance. They’ll also keep company-provided mobile devices and remote-work equipment, and will be considered for new positions as they’re created.
During the first quarter, advertising revenue began falling at LinkedIn, according to The Wall Street Journal. Parent company Microsoft said it expected the pandemic could take a continuing toll on LinkedIn as hiring slowed down. In April, LinkedIn said it didn’t plan to make any pandemic-related layoffs until the end of June.
Sign up for our newsletter here.