LinkedIn is laying off approximately five percent of its workforce, which equates to around 875 employees from its total of over 17,500 full-time staff. The company did not specify artificial intelligence as a reason for the layoffs, according to a source familiar with the matter.
CEO Daniel Shapero highlighted that the restructuring efforts are part of the company’s strategy to scale back investments in several areas, including marketing campaigns, vendor spending, customer events, and underutilized office space. In a memo shared with Business Insider, Shapero emphasized the aim to focus teams on priorities that yield the highest return on investment.
Layoffs will affect teams across the Global Business Organization, as well as those in marketing, engineering, and product divisions. LinkedIn will also close its office in Graz, Austria, as part of this reorganization.
A LinkedIn spokesperson stated that these changes are part of regular business planning aimed at positioning the company for future 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.”
Shapero added that to effectively meet the current needs of the market, LinkedIn must operate more profitably and re-invent its work processes, shifting investments toward infrastructure and other key areas. This announcement comes shortly after Microsoft began offering voluntary buyouts to up to seven percent of its workforce.
According to Microsoft’s latest earnings report, LinkedIn’s revenue increased by 12 percent in the first quarter of 2023 compared to the same period in 2022.
