Microsoft's LinkedIn to cut more than 700 workers

Microsoft subsidiary LinkedIn announced that it would be reducing its workforce by more than 700, becoming the latest US technology name to make layoffs.

The news of 716 redundancies was shared in a letter to employees from LinkedIn chief executive officer Ryan Roslansky, who referenced changes in customer behaviour as well as slower revenue growth.

Roslansky said LinkedIn would be reorganising its ‘global business organisation’ as it focussed on three key areas - reorganising how work gets done, becoming more agile, and aligning its teams for growth.

He said that would involve bringing teams together in a “more integrated model”, to better support customers, reduce management roles, broaden responsibilities to make decisions quicker, and opening up more than 250 new roles in specific segments of its operations, new business, and account management teams starting on 15 May.

The CEO said LinkedIn would also focus its China business on its Go Global strategy, by assisting companies operating in China to hire, market, and train abroad.

That would involve maintaining its talent, marketing and learning businesses, while phasing out ‘InCareer’, its local jobs app in China, by 9 August.

Roslansky said the company was committed to providing support to impacted employees, including US benefit-eligible staff who would receive benefits including severance pay, continuing health coverage, and career transition services.

Benefits for employees outside the US would align with the employment laws and local practices in each country, he confirmed.

For both the global business organisation and China employees, LinkedIn said its internal mobility process would be available for team members to help find a new role if there was a skill fit.

“As we turn 20, we are entering a new decade for LinkedIn, one that will perhaps be the most consequential we’ve experienced to date,” Roslansky said in his letter.

“AI is just beginning to accelerate changes in the global economy and labour market, and LinkedIn is more essential than ever to help our members and customers navigate the changes to access economic opportunity.

“As we plan for the 2024 financial year, we’re expecting the macro environment to remain challenging.”

The CEO said LinkedIn was “adapting”, explaining that it would continue to manage its expenses as it invested in strategic growth areas.

“Our focus over the next week is on supporting our impacted colleagues.

“We are saying goodbye to exceptional individuals, and any company will be fortunate to have them.”

At 0959 EDT (1459 BST), shares in Microsoft Corporation were up 0.57% on the Nasdaq, at $309.11.

Reporting by Josh White for Sharecast.com.