According to a document obtained by CNBC, the majority of the 700 job cuts announced on Monday by Microsoft-owned LinkedIn were from the engineering department. According to a person with knowledge of the matter who asked to remain anonymous because they lacked authorization to speak about the changes, there were also cuts made in the company’s finance and human resources departments.
The decreases occur at a time when the business-focused social network’s year-over-year revenue growth has slowed for eight consecutive quarters. Microsoft reported in July that despite membership growth having advanced each quarter for the previous two years, it increased by just 5% in the second quarter.
To deliver on the key initiatives we’ve identified that will have an outsized influence on reaching our business goals, LinkedIn executives Mohak Shroff and Tomer Cohen said in the email, “As we continue to execute on our FY24 strategy, we also need to transform how we work and what we prioritise.” This entails changing our organisational structures to increase responsibility and agility, to clearly define who is responsible for what, and to decrease layering in order to increase efficiency and transparency.
Source (CNBC)