LinkedIn is laying off approximately five percent of its workforce, equating to 875 employees from a total of over 17,500 full-time staff. The company has not cited artificial intelligence as a reason for these layoffs, according to a source who spoke to Reuters.
The layoffs will impact teams across LinkedIn’s Global Business Organization, marketing, engineering, and product divisions. In addition, the company plans to close its office in Graz, Austria, as part of a broader reorganization effort.
CEO Daniel Shapero stated in a memo that LinkedIn is scaling back investments in areas such as marketing campaigns, vendor spending, and underutilized office space to concentrate on high-impact priorities. He emphasized the need for the company to deliver better returns on investment and to shift investments toward infrastructure for long-term success.
Shapero noted, “Economic opportunity is one of the societal issues of our time, and LinkedIn has been and will continue to be the platform that professionals and companies turn to as they navigate the changing world of work.” He outlined plans to redefine team operations with agile methodologies to reinforce the company’s mission and vision.
This layoff announcement follows recent actions by parent company Microsoft, which reportedly began offering voluntary buyouts to as much as seven percent of its workforce. According to Microsoft’s latest earnings report, LinkedIn’s revenue increased by 12 percent in the first three months of 2023 compared to the same period in 2022.
