LinkedIn generates revenue by selling ads and charging sales and recruiting professionals who use the network to discover qualified job applicants a subscription fee.
Digital Desk: In the second wave of job cuts this year for the professional social media network, Microsoft's LinkedIn announced on Monday that it would lay off of 668 employees from its engineering, talent, and finance teams. This decision was made in response to slow revenue growth.
In light of the grim economic predictions, the job cuts, which affect more than 3% of the 20,000-person workforce, are in addition to the tens of thousands of job losses already experienced by the technology sector this year.
According to employment company Challenger, Grey & Christmas, the industry has laid off 141,516 workers in the first half of the year compared to approximately 6,000 a year ago.
LinkedIn generates revenue by selling ads and charging sales and recruiting professionals who use the network to discover qualified job applicants a subscription fee.
LinkedIn's revenue climbed 5% year over year in the fourth quarter of its fiscal 2023 year as opposed to 10% in the third.
Despite continuing to recruit new members to its 950 million-strong group, LinkedIn has been facing headwinds from Microsoft, including a halt in hiring and a decrease in advertising spending.
In order to streamline its processes and remove layers to facilitate quicker decision-making, LinkedIn decided in May to eliminate 716 employees across its sales, operations, and support departments.
