LinkedIn Slashes Jobs: Hundreds Laid Off by Microsoft-Owned Platform

In the midst of ongoing industry-wide reorganisation, Microsoft-owned LinkedIn has announced the layoff of 281 workers throughout California, joining a growing number of IT firms that have done so.

A recent filing with the state's employment agency revealed the job layoffs, which primarily affected talent account directors, senior product managers, and software engineers.

These layoffs follow Microsoft's announcement that, as part of larger efforts to streamline operations, it would eliminate nearly 6,000 jobs, or roughly 3% of its global workforce. The wave of layoffs draws attention to persistent issues in the computer industry, where businesses are reassessing their objectives and increasing productivity.

LinkedIn Shrinking its Workforce

Over the past year, LinkedIn, a prominent professional networking and recruitment platform, has experienced multiple rounds of layoffs. The corporation laid off 668 employees in its finance, talent, and engineering departments in October 2023.

Earlier, in May 2023, 716 positions were eliminated from the operations, sales, and support teams in an effort to streamline the company and expedite decision-making. Similar upheaval still affects the larger tech sector.

In May, Google laid off 200 workers from its global business unit, primarily impacting the partnerships and sales teams.

Significant changes were also revealed earlier this year by parent firm Meta, which laid off 3,600 employees, or 5% of its workforce, mostly from the logistics, Facebook, and Horizon VR teams after a revised performance evaluation.

Might Following Others to Infuse More AI in Work Operations

Although LinkedIn has not issued a formal announcement, industry watchers believe that the layoffs were likely sparked by Microsoft's overall strategy move towards artificial intelligence. Recently, Microsoft CEO Satya Nadella said that up to 30% of the code in a number of internal projects is now written by AI.

 This statistic highlights the increasing significance of automation in fundamental development processes. These layoffs seem to be a component of Microsoft's broader employment cut, which is expected to impact 6,000 workers worldwide.

In another round of layoffs earlier this month, 122 Microsoft workers in the Bay Area were let go. Although Ryan Roslansky, the CEO of LinkedIn, has not made any public statements, this quiet stands in stark contrast to the company's 2023 layoff of 716 employees, in which Roslansky addressed the decision directly in a widely shared employee email.

Many workers and spectators are guessing about the scope and direction of future cuts as a result of this time around's lack of information.

Restructuring the Entire Ecosystem

LinkedIn, which employs more than 18,400 people full-time worldwide, has long been regarded as a reliable platform inside the Microsoft ecosystem. This most recent round of layoffs, however, suggests a possible change in strategy.

Businesses like Microsoft are reassessing their workforce requirements as AI tools become more integrated into development, operations, and product processes.

The layoffs' timing also fits with a larger industry trend of operations being streamlined in the face of economic challenges and growing automation capabilities.

Although AI increases efficiency, it also poses challenging issues about the future of human positions in tech-driven organisations, especially in fields like engineering that were previously seen to be secure.