LinkedIn, a professional social media network under Microsoft’s ownership, has initiated a workforce reduction, affecting over 500 employees. The impact has been felt particularly in the engineering and finance sectors, resulting in 668 job cuts. This marks the second instance of employee layoffs within the same year for the platform. In May, the company let go of 716 employees, predominantly from operations and support departments. The tech industry has been grappling with uncertainties in the global economy, leading to a surge in job cuts. According to Challenger, Gray and Christmas, an employment watchdog, the technology sector witnessed a substantial rise in job losses, totaling 141,516 during the first half of this year, a significant increase from the 6,000 recorded in the previous year.
LinkedIn primarily generates its revenue through advertising and subscriptions. Recruitment agencies frequently subscribe to LinkedIn to identify suitable candidates. Despite facing challenges, LinkedIn reported a 5 percent revenue increase for the fourth quarter of fiscal year 2023 compared to the previous year. However, this growth was a decline from the 10 percent increase witnessed in the prior quarter.The platform attributed its revenue downturn to a global reduction in advertising expenditures by companies. LinkedIn is actively working to expand its membership base and currently boasts a membership of 950 million individuals. The company remains committed to adapting to market changes and enhancing its services to overcome the present challenges in the industry.
