Microsoft (NASDAQ:MSFT)-owned LinkedIn announced Monday that it cut almost 700 employees, with most coming from the engineering organization. Cuts also came in the company’s finance and human resources groups, according to a person familiar with the situation who asked to remain unidentified because they were not authorized to discuss the changes.
The reductions come as the business-oriented social network has seen year-over-year revenue growth slow for eight consecutive quarters. It grew just 5% in the second quarter, even as membership growth has accelerated each quarter for the past two years, Microsoft said in July.
“As we continue to execute on our FY24 plan, we need to also evolve how we work and what we prioritize so we can deliver on the key initiatives we’ve identified that will have an outsized impact in achieving our business goals,” LinkedIn executives Mohak Shroff and Tomer Cohen wrote in the memo. “This means adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership and driving improved efficiency and transparency through reduced layering.”
“Mr. Softee”, as it’s called, announced in January that it was cutting 10,000 employees, and additional ones following in July. The slimming down comes as Microsoft’s overall revenue growth has slipped, pushing CEO Satya Nadella to lower costs across the company.
These new layoffs are in addition to the 10,000 from January, a spokesperson said.
As for Microsoft, its shares began Tuesday lower $2.72 to $329.92.
