LinkedIn in its latest post confirms that it will cut a further 668 jobs. LinkedIn has announced the layoff second time this year. With this layoff, a total of nearly 1,400 workforce has been reduced by Microsoft-owned LinkedIn.
LinkedIn has cited that managing the business process and looking for new-age talents the decision to job cut has been taken by the organisation. In the shared post, LinkedIn said that the majority of layoffs will be from engineering, product, talent and finance teams.
668 layoffs by LinkedIn: What is the reason
The official post on job cut says, “ Talent changes are a difficult, but necessary and regular part of managing our business? The changes we shared with our team today will result in a reduction of approximately 668 roles across our engineering, product, talent and finance teams.”
The workforce reduction by LinkedIn has been justified by the fact that the company is making structural changes to streamline the decision-making process. Also, the company is making strategic investments in future and new-age technology like Artificial Intelligence and Machine learning.
“While we are adapting our organizational structures and streamlining our decision-making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers. We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect”, read a LinkedIn post on jobs reduction.
LinkedIn layoffs came after the ‘Recruiter 2024’ an AI-powered assistant for job recruiters so that Talent Acquisition can get a new boost. Read Here: Microsoft-owned LinkedIn releases AI-powered assistant for job recruiters; A Boost for Talent Acquisition
A Majority of industry experts say that integration of new age technology will make many job roles obsolete as it will be automated. In the coming days there will be more usage cases of AI ML integration and with effective implementations the companies will likely to reduce the workforce.
Earlier, during the launch of ‘Recruiters’ the Microsoft-owned LinkedIn has said that recruiters can now utilise natural language queries to ask questions and identify potential candidates on the LinkedIn platform, making the search process more intuitive and efficient. Furthermore, this AI tool enables recruiters to create ad campaigns for job openings, simplifying the outreach to potential candidates.
Why LinkedIn layoffs 668 Employees: Despite in profit of 5% revenue year-over-year
Earlier in July 2023, Microsoft has announced Q4 FY23 Earnings highlighting the fact that LinkedIn’s revenue increased 5% year-over-year (7% in constant currency). Also, revenue has surpassed $15 billion for the first time this fiscal year and membership growth has now accelerated for eight quarters in a row. The highlights of Microsoft Earnings Release FY23 Q4 is listed below.
- In Q4, LinkedIn’s revenue increased 5% year-over-year (7% in constant currency).
- LinkedIn’s revenue surpassed $15 billion for the first time this fiscal year and membership growth has now accelerated for eight quarters in a row, a testament to how mission-critical the platform has become to help more than 950 million members connect, learn, sell, and get hired.
- Our Talent Solutions business surpassed $7 billion in revenue for the first time over the past 12 months, and our hiring business took share for the fourth consecutive quarter.
- We continue to use AI to help our members and customers connect to opportunities and tap into the experiences of experts on the platform. Our AI-powered collaborative articles are now the fastest-growing traffic driver to LinkedIn.
- And finally, we’re helping LinkedIn stay trusted and authentic. More than 7 million members have verified who they are or where they work, many using new integrations with Microsoft Entra, as well as CLEAR and Hyperverge.