The professional networking platform LinkedIn announced its decision to dismiss 668 employees, which would further alter its organizational structure, as it adopts artificial intelligence technology.
A trustworthy source reports that 563 layoffs would mostly affect R&D teams in engineering, product development, talent acquisition, and finance.
This personnel reorganization, which was announced earlier today, comes only five months after LinkedIn previously announced the elimination of 716 jobs. Additionally, the business announced its plan to phase down its China application.
Today's announcement brings Microsoft-owned LinkedIn's layoffs total to 1,384. According to the employment tracking website Layoffs.fyi, nearly 242,000 jobs have been lost in the IT sector since the start of 2023.
Changing for The Future
According to TechCrunch, LinkedIn stated in an unsigned press release: "While we are adapting our organizational structures and streamlining our decision-making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers. We are committed to providing our full support to all impacted employees during this transition and ensuring that they are treated with care and respect."
Although the firm does not elaborate on the specifics of these strategic initiatives, it is anticipated that hiring more AI experts will receive considerable attention.
Since Microsoft acquired LinkedIn for over $26 billion in 2016, LinkedIn's financial position and operational data have become increasingly opaque. LinkedIn claimed over 950 million users and $15 billion in sales in Microsoft's July 2023 full-fiscal-year earnings release, per The Verge. It should be noted that Talent Solutions became the biggest contributor, accounting for more than $7 billion of the overall revenue.
New AI Features Announced
This week, LinkedIn not only made this job cuts news but also unveiled some new AI features, such as AI-assisted prospect discovery for recruiters. By streamlining natural language searches, this feature hopes to minimize the importance of conventional factors like educational background and job title. It will also suggest ways to tailor job positions to individuals' talents, weaknesses, and ideal locations.
Additionally, LinkedIn plans to offer AI-powered tutoring through its LinkedIn Learning service, which is only available to subscribers. This features a chatbot service created to mentor professionals through trying times in their careers and personal growth. Additionally, the company is allegedly developing an AI employment coach.
LinkedIn's overall financial performance is solid despite the restructuring. The platform, which had sales of more than $15 billion in the previous fiscal year, has recently attracted a lot of attention thanks to articles like "Influencers and CEOs Take Their Brands to LinkedIn" in the Financial Times.
This strategic personnel reduction is in line with Microsoft's wider cost-cutting initiatives, which were first publicized in January with the loss of 10,000 jobs and then expanded in July. Microsoft is focusing on cost containment as revenue growth slows, according to CNBC.
