LinkedIn, the professional networking platform owned by Microsoft, has announced layoffs affecting 4% of its workforce, totaling 716 employees. Despite reporting “record engagement on the platform,” CEO Ryan Roslansky cited shifts in customer behavior and slower revenue growth as the reasons behind the cutbacks. The number of tech workers laid off in the first few months of 2023 has already exceeded the total for 2022, though the exact cause for LinkedIn’s downsizing remains unclear.
Roslansky’s letter to employees did not mention the impact of artificial intelligence (AI) on jobs, despite the rising influence of AI in recent weeks. However, the company’s Global Business Organization (GBO) is undergoing a review, with plans to streamline operations and enhance agility by reducing managerial layers and fostering closer collaboration among teams.
Despite the layoffs, LinkedIn is also opening up more than 250 new roles, primarily focused on developing the necessary skill sets to support the platform’s growing demand for AI technologies. This move will decrease the net number of redundancies to approximately 500.
In addition to the workforce reductions, LinkedIn revealed plans to discontinue its China-local jobs app, InCareer, by early August 2023. The decision was attributed to intense competition and challenging macroeconomic conditions. Users of InCareer have until August 9 to download their data, after which it will be permanently deleted. The discontinuation of InCareer will not impact other features and services offered by LinkedIn.
Looking ahead, LinkedIn is expected to announce its plan for the fiscal year in the coming weeks. The company has already indicated that it anticipates ongoing challenges in the near future. As LinkedIn navigates these changes, it aims to adapt to evolving customer needs and market dynamics while positioning itself for continued growth and success in the professional networking space.
