New Delhi

In response to economic challenges and a notable revenue slowdown, LinkedIn, the professional social network owned by Microsoft, has embarked on a significant transformation. With over two rounds of layoffs this year, the company is reducing its workforce by 1,384 employees.

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Restructuring for efficiency

LinkedIn's first major step in streamlining operations was in May when it cut 716 jobs across sales, operations, and support teams. This decision aimed to remove organisational layers, fostering agility and quicker decision-making. This wasn't just about cutting jobs; it was about optimising efficiency.

The second round of layoffs

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The recent announcement of 668 job cuts in engineering, talent, and finance teams signifies LinkedIn's ongoing commitment to restructuring. This move comes as the second round of layoffs within a year, affecting over 3% of its 20,000-strong workforce. It's not an isolated event but part of a deliberate strategy.

The broader tech landscape

LinkedIn's actions reflect the broader challenges faced by the tech industry. This year, the sector has seen an unprecedented 141,516 job losses, starkly contrasting the 6,000 job cuts in the previous year. LinkedIn primarily generates its revenue through advertising sales and subscriptions. While the company reported a 5% increase in revenue in the fourth quarter of 2023, it's a decrease from the 10% growth seen in the previous quarter. LinkedIn's slowdown is attributed to reduced hiring and a decline in advertising spending.

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Amid these challenges, LinkedIn remains steadfast in its commitment to strategic priorities. The platform continues to add new members to its extensive community, which boasts over 950 million users.

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