In a move reflecting the slowdown in hiring activity, Microsoft’s LinkedIn has announced its decision to lay off 668 employees from various departments, including engineering, talent, and finance. This marks the second round of job cuts for the professional social media network this year, as the demand for hiring services experiences a decline.
These staff reductions, affecting slightly over 3 percent of LinkedIn’s workforce of 20,000 employees, contribute to the substantial job losses witnessed in the technology sector throughout the year, amidst an uncertain economic outlook.
The technology sector has witnessed a significant reduction in its workforce, with 141,516 employees laid off during the first half of the year, in stark contrast to the approximately 6,000 job losses reported in the previous year, as reported by employment firm Challenger, Gray & Christmas.
LinkedIn generates revenue through advertising sales and by charging for subscriptions tailored to recruitment and sales professionals who utilize the platform to identify suitable job candidates.
This announcement follows a similar move made by LinkedIn in May, where they eliminated 716 positions within their sales, operations, and support teams. This strategic streamlining of operations aimed to remove layers of bureaucracy, facilitating faster decision-making processes.