Another 670 people are planned to be laid off at LinkedIn, the owner of this social networking site, Microsoft, announced. The reductions will cover engineering, human resources and finance teams.
This is not the first such decision this year. Already in May, LinkedIn eliminated 716 jobs. This followed job cuts at other major technology companies.
LinkedIn is reducing employment
“Change is a difficult but necessary part of managing our business,” the company has now written in a LinkedIn post. This time, the service plans to lay off another 670 people. The latest job cuts will amount to approximately 3%. employed.
LinkedIn’s main source of income is paid job postings and premium subscriptions. The website is used by recruiters all over the world.
However, for some time now, the company has been struggling with a limited number of new recruitments and smaller advertising expenditures. In the fourth quarter of 2023, the company’s revenues increased by 5%. year on year compared to an increase of 10%. in the previous quarter.
Layoffs in the technology industry
Since late 2022, tech companies including Amazon, Meta and Google’s parent company, Alphabet, have laid off tens of thousands of workers. In January 2023, LinkedIn’s parent company, Microsoft, announced the layoff of 10,000 employees.
The BBC notes that all of these companies are investing heavily in AI-based technologies such as ChatGPT (owned by Microsoft) and Bard (owned by Google).
The U.S. technology sector has announced more job cuts than any other industry this year. According to a report by the American consulting company Challenger, Gray & Christmas, 150,000 people employed in this part of the economy have already lost their jobs this year.
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