LinkedIn will reduce its workforce by about 3%, eliminating more than 650 jobs, according to media reports. The company said it was “streamlining our decision-making” but will continue to invest in its strategic priorities.
In May, the Microsoft unit let go about 700 employees because of lessening demand as the job market’s trends became less clear. At the time, CEO Ryan Roslansky said LinkedIn had observed “shifts in customer behavior and slower revenue growth,” reported the New York Times.
The latest reductions eliminate about 668 roles across engineering, product, talent and finance.
LinkedIn isn’t alone in reducing headcount. The Times observed that Microsoft, Google, Meta and Amazon have all cut back their workforces during 2023. When Microsoft laid off 10,000 workers in January, or abut 5% of its workforce, the company said it wanted to reduce costs and refocus its priorities. More recently, Qualtrics eliminated 780 positions after five years of rapid growth and hiring.
In total, the technology sector laid off 141,516 employees in the first half of 2023. That compares with abut 6,000 during the same period in 2022, said Challenger, Gray & Christmas.
LinkedIn’s revenue for 2023’s second quarter grew 5% year on year, rising beyond $15 billion for the first time, the Times said. The company’s recruiting business powered the increase. The company also reported having 950 million users that quarter, representing the eighth straight quarter of increasing membership.
Earlier this month, LinkedIn unveiled new AI-based capabilities for LinkedIn Recruiter and LinkedIn Learning, including features to create customized talent pools, recommend matching candidates and coach users in career development. In addition, the company said over the next six months it plans to improve the interaction between platform and user, build more effective pipelines and better manage the overall recruiting process.
LinkedIn has worked to generally improve its talent acquisition products recently, launching tools that allow employers to match themselves with candidates who have specific interests outside of the workplace. At the same time, LinkedIn launched an “I’m Interested” feature that allows job seekers to indicate their interest in working for a particular company.
Even while cutbacks are going on, there are some indications that tech companies are quietly hiring contract workers to help get work done in the wake of layoffs.