According to news on October 17, according to a memo reviewed by the media, LinkedIn, owned by Microsoft, announced on Monday that it would lay off nearly 700 employees, most of whom were from the engineering department. The layoffs also involve the company's finance and human resources departments, according to a person familiar with the matter who spoke on condition of anonymity. The layoffs come as LinkedIn's annual revenue growth slows for eight consecutive quarters. Microsoft said in July that while membership growth had accelerated each quarter over the past two years, it grew just 5% in the second quarter.
"As we execute on our fiscal 2024 plan, we also need to evolve our working practices and priorities to deliver on the key initiatives we have identified that will have a significant impact on achieving our business goals," LinkedIn executives Mohak Shroff and Tomer Cohen wrote in the memo. "This means we need to adjust our organizational structure to increase flexibility and accountability, clarify authority and responsibility, and increase efficiency and transparency by reducing layers."
Microsoft announced the layoffs of 10,000 employees in January this year and made additional layoffs in July. As Microsoft's overall revenue growth slows, CEO Satya Nadella has to reduce the company's costs.
The new layoffs are in addition to 10,000 layoffs in January, a spokesman said.
According to people familiar with the matter, LinkedIn is currently increasing its recruitment efforts in India.
"While we are adjusting our organizational structure and decision-making processes, we will continue to invest in future strategic priorities to ensure we deliver value to our members and customers," LinkedIn said in a blog post. "We are committed to providing full support to impacted employees during this transition period and ensuring they are cared for and respected."
Here's the full memo:
Team members:
We did not expect to share this important news with you during this challenging time, but to provide clarity, Tomer and I wanted to share with you some changes to our organization.
While executing on our plan for FY24, we will also need to evolve our working practices and priorities to deliver on the key initiatives we have identified, which will have a significant impact on achieving our business objectives. This means we need to adjust our organizational structure to increase flexibility and accountability, clarify authority and responsibility, and increase efficiency and transparency by reducing layers.
These decisions resulted in the reduction of 563 positions in R&D. Specifically, engineering management positions decreased by 137 and product positions decreased by 38. Additionally, to better match resources planned for fiscal 2024, we will eliminate 388 positions in our engineering team and create a small number of new positions to fill critical gaps in our ambitious roadmap.
Those directly affected by these changes will receive a calendar invitation titled "Must Attend: R&D Job Cuts" within the next hour. This meeting will provide you with details on how to be supported during the transition.
If you did not receive this invitation, please expect your department's product or engineering lead to communicate with you soon with specific information about your organizational structure and how we will address these changes together.
Tomer and I are thoughtful in making these decisions, taking into account the long-term needs of the company and recognizing that each affected individual plays a valuable role in LinkedIn's growth and success.
In the coming days, we will focus on supporting each other and discussing how we will move forward guided by our vision, mission, and values. At this critical time, we must support our colleagues who are going through this transition. Let us continue to practice empathy and understanding during this difficult time and use this as the cornerstone of our support for each other.
(Translation/Chenchen)