LinkedIn, the popular social networking site focused on professional connections, has announced plans to cut more than 700 jobs as a result of declining demand. The news came in an email from CEO Ryan Roslansky, which was subsequently published on the company’s website. With approximately 20,000 employees, LinkedIn is primarily used for job searching and recruitment, generating revenue through advertising sales and fees for its recruitment and sales services.

Despite experiencing revenue growth in the past year, LinkedIn, like many other technology companies, has made the decision to reduce its workforce due to the increasingly challenging global economic outlook. As a platform that has been in existence for 20 years, LinkedIn serves as a hub for job seekers and recruiters.

Roslansky explained that the job cuts in sales, operations, and support teams are intended to streamline business operations and expedite decision-making. However, the company is also creating 250 new external job positions to offer opportunities for individuals whose positions have been eliminated.

Microsoft, which acquired LinkedIn for approximately $26 billion in 2016, recently announced its own round of layoffs, affecting around 11,000 positions. According to the website Layoffs.fyi, the technology sector has seen over 270,000 job cuts in the past six months. The site specializes in tracking layoff information within the technology industry.

Several prominent technology companies have been affected by these job cuts. Meta, the parent company of social media platforms Facebook and Instagram, laid off 11,000 employees last fall, with additional layoffs impacting thousands more during the spring. Dutch consumer electronics and medical equipment manufacturer Philips also announced plans in late January to eliminate 6,000 jobs over the next two years, following extensive layoffs affecting 4,000 employees announced in October.

In January, other technology companies such as SAP, IBM, Xiaomi, Twitter, and HP also announced significant layoffs. These workforce reductions indicate a notable disruption within the technology sector, underscoring the impact of the ongoing pandemic and the resulting global economic downturn.

The job cuts at LinkedIn and other technology companies highlight the challenges faced by the industry and reflect the need for companies to adjust their operations to align with changing market dynamics.

Article by Prague Forum