LinkedIn , which is owned by Microsoft , announced on Monday the layoffs of about 700 employees, most of them from the organization's engineering department.
Also, according to a press release published by CNB, cuts were made in the company's finance and human resources departments, according to information from a person familiar with the situation.
The declines have hit the business-oriented social network as its revenue has been sluggish for eight straight quarters. Despite growing its membership every quarter for the past two years, growth was just 5% in the second quarter, Microsoft said in July.
As we move forward with our FY24 plan, it is essential to evolve our way of operating and our priorities. This will enable us to deliver on the key initiatives we have identified that will have a significant impact on achieving our business objectives. We are realigning our organizational structures to achieve greater agility and accountability, establishing clear ownership and driving improved efficiency and transparency through a simpler organization.
In January, Microsoft announced it would cut 10,000 employees, with further cuts following in July. The decision comes as Microsoft's overall revenue has declined as CEO Satya Nadella seeks to cut costs across the company.
These recent layoffs add to the 10,000 that have already been made since January, a spokesman said.
LinkedIn is reportedly increasing hiring in India.
As we adjust our organizational structures and improve our decision-making process, we continue to invest in strategic priorities for our future and ensure we continue to deliver value to our members and customers, LinkedIn announced in a blog post .
We are committed to providing full support to all employees affected during this transition and ensuring they are treated with care and respect.
Read also: Abuse of LinkedIn Smart Links to target Microsoft accounts
Here is the full note:
Group,
We did not expect to share this important update with all of you during such difficult times. However, Tomer and I would like to share some news regarding the changes we are planning to make to our organization.
As we continue to execute on our FY24 plan, we must also evolve how we work and what we prioritize so that we can deliver on the key initiatives we have identified that will have a huge impact on achieving our business objectives. This means adapting our organizational structures to improve agility and accountability, establish clear objectivity, and drive improved efficiency and transparency through reduced bureaucracy.
These decisions result in the reduction of 563 positions in R&D. Specifically, there are 137 engineering management roles and 38 product roles being reduced. In addition, there will be 388 role reductions across our Engineering team in an effort to better align resources with our FY24 plan, and we will open a small number of new roles to fill critical gaps in our ambitious roadmap.
For those directly impacted by these changes, you will receive an invitation to your calendar within the next hour titled “Required Engagement: Reduction of R&D Roles.” This meeting will provide you with detailed information on how we will support you during this transition.
If you do not receive this invitation, expect to hear from your Product or Engineering leader soon, who will provide you with details about your organization and how we can move forward together on these changes.
Tomer and I made these decisions with a careful eye on the long-term needs of our business. We recognize that every person affected has played a vital role in the growth and success of LinkedIn.
In the coming days, we will focus on supporting each other and discussing ways to move forward, based on our vision, mission and values. Today, it is essential to support our colleagues during this transition. Let us continue to inspire compassion and understanding in these difficult times and consider them as the basis for the support we provide to each other.
Mohak & Tomer
Source: cnbc.com
