Microsoft-owned LinkedIn has announced that it would lay off 668 employees.
Marking the second set of job cuts this year for the platform, the redundancies will impact roles across the company’s engineering, talent, product, and finance teams.
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In a post, LinkedIn said: “Talent changes are a difficult, but necessary and regular part of managing our business.”
The latest job cuts represent 3% of the company’s 20,000 workforce, reported Reuters.
Due to the uncertain economic environment, there have already been tens of thousands of job losses in the technology sector this year.
According to recruitment company Challenger, Grey & Christmas, the tech sector has laid off 141,516 workers in the first half of the year compared with approximately 6,000 a year ago.
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By GlobalDataLinkedIn said: “While we are adapting our organisational 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.”
LinkedIn generates revenue by selling ads and through a subscription model for recruiting professionals who use the network to discover qualified job applicants.
LinkedIn’s revenue increased 5% year over year in the fourth quarter of its fiscal 2023 year as opposed to 10% in the year-ago quarter.
Microsoft believes that a halt in hiring and a decrease in advertising spending are the key challenges for LinkedIn.
In May this year, LinkedIn axed 716 jobs affecting its sales, operations and support teams.
At the time, LinkedIn CEO Ryan Roslansky said the job cuts were part of the company’s attempts to streamline processes and would expedite decision-making.
Also in May, LinkedIn announced plans to shut its Chinese job application, InCareers.
The company cited tough competition and a challenging macroeconomic environment as the reasons for discontinuing the service.
