LinkedIn announces layoffs as part of company restructuring

LinkedIn, the professional social media platform, has announced that it will be laying off 668 employees across its engineering, product, talent, and finance teams as part of a broader restructuring effort. In a blog post, the company stated that these changes are aimed at streamlining its decision-making process and optimizing its organizational structure.

While talent changes are never easy, LinkedIn emphasized that they are necessary for managing the business effectively. The company, which was acquired by Microsoft in 2016, is now focusing its resources on developing artificial intelligence capabilities. It recently introduced an AI-assisted candidate discovery feature for recruiters and reported that its AI-powered collaborative articles are driving the fastest-growing traffic on the site.

This announcement comes after LinkedIn had already cut 716 positions in May and discontinued its jobs app in mainland China due to shifting customer behavior and slower revenue growth. In a letter to employees, CEO Ryan Roslansky explained that these decisions were made to adapt to market trends and ensure the company’s long-term success.

Despite these workforce reductions, LinkedIn has seen an increase in users and record engagement among its 875 million members. Microsoft CEO Satya Nadella highlighted this growth in a previous earnings call, noting that the company’s financial performance has remained strong. In fact, LinkedIn recently reported surpassing $15 billion in revenue for the first time in its history and experiencing accelerated membership growth for eight consecutive quarters.

The tech sector experienced a wave of layoffs at the end of the previous year, but LinkedIn managed to weather the storm and even thrive amidst the challenges. The company’s focus on leveraging AI technology and providing valuable services to professionals appears to have contributed to its continued success.

It is worth noting that CNN’s Laura He and Clare Duffy contributed to this report, providing additional context and insights.