Professional social networking platform LinkedIn has announced the latest round of layoffs as part of the cost-cutting. The layoffs will impact teams across engineering, product, marketing and the company’s Global Business Organisation. LinkedIn CEO Daniel Shapero informed employees about the job cuts in an internal memo, which was viewed by Business Insider. As per Reuters, the company plans to cut about 5 per cent of its staff.
According to the memo, LinkedIn will also ‘scale back investments’ in areas such as marketing campaigns, vendor spending, customer events, and office spaces that are not being fully used. The company is also shutting down its office in Graz, Austria.
Also read: OpenAI exec claims Elon Musk called him donkey during AGI safety argument, here is why
In a statement shared with Business Insider, a LinkedIn spokesperson said, ‘As part of our regular business planning, we’ve implemented organizational changes to best position ourselves for future success.’
‘We need to reinvent how we work, with agile teams focused on our highest priorities, and by shifting investments toward areas such as infrastructure to fulfill our mission and vision over the long term. This requires hard prioritization and tradeoffs,’ the memo reads.
The layoffs at LinkedIn come at a time when its parent company, Microsoft, is also cutting costs while increasing investments in AI infrastructure. Microsoft is reportedly planning to spend nearly $190 billion this year, with a major portion going toward AI-related projects and data center expansion.
Also read: Foxconn hit by cyberattack, hackers claim theft of Apple and Google data: Are you safe?
Last month, Microsoft also introduced buyout offers for long-serving employees. According to an internal document viewed by Business Insider, eligible employees could receive severance packages worth up to 39 weeks of base pay.
Also read: Sam Altman says Elon Musk wanted OpenAI under family control, hurt company culture with pressure