As the demand for recruiting services declines, Microsoft’s LinkedIn announced Monday that it would fire 668 employees from its engineering, talent, and finance teams. This is the second wave of job cutbacks for LinkedIn this year.
The layoffs, which affect more than 3% of the 20,000-person workforce, come amid a bleak economic forecast, and the technology sector has already lost tens of thousands of jobs this year, Reuters reported.
According to recruitment company Challenger, Gray & Christmas, the sector has let go 141,516 workers in the first half of the year compared to approximately 6,000 a year ago.
LinkedIn generates revenue by selling ads, charging sales, and recruiting professionals who use the network to discover qualified job applicants for a subscription fee.
In May, the social media platform decided to eliminate 716 positions from its sales, operations, and support teams to streamline its business processes and eliminate unnecessary bureaucracy.
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.
As the demand for recruiting services declines, Microsoft’s LinkedIn announced Monday that it would fire 668 employees from its engineering, talent, and finance teams. This is the second wave of job cutbacks for LinkedIn this year.