Due to the slowing down of revenue growth in the last two years, Microsoft’s LinkedIn Laid Off has almost 700 employees. Most of the layoffs are targeting LinkedIn’s core social engineering group. Microsoft claimed that there is more coming from the engineering organization, as per their memo.
The company made many cuts in the finance and HR sections, as per the people close to the situation. LinkedIn, the social network for business and professions, has seen a slow growth in its revenue for eight consecutive quarters. In the second quarter, the revenue grew just 5%, despite a rise in membership in the social media platform in the last two years.
Mohak Shroff and Tomer Cohen, two LinkedIn executives who prepared a memo for CNBC, wrote –
“As we continue to execute on our FY24 plan, we need to also evolve how we work and what we prioritize so we can deliver on the key initiatives we’ve identified that will have an outsized impact in achieving our business goals. This means adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership and driving improved efficiency and transparency through reduced layering.”
In January, Microsoft announced that it would lay off 10,000 employees and more in July. Microsoft started to slim down after it faced a slip in revenue growth, as CEO Satya Nadella started lowering costs across the company. The new cut in jobs is in addition to the 10,000 layoffs from January.
According to sources, LinkedIn is increasing its hiring in India. It is trying to adapt to its organizational structures and streamline the decision-making process. The focus is to continue to invest in strategic priorities for the future and ensure that members and customers get proper value delivery.