A staggering 716 jobs have been cut at the social media network LinkedIn.
Currently, 20,000 employees work at the Microsoft-owned company, whose headquarters are in Sunnyvale, California.
The app in China is also going to be closed, meaning the company will make cuts to local jobs there.
“As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees,” LinkedIn’s CEO said in a letter to employees on Monday.
Mr Roslansky also said that with “the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors.”
“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,” he added.
What is it like being a leader in the ever-changing tech industry?
Laura Baldwin, President at O’Reilly, says: “It’s easy to get caught up in the news of the day, especially with so much coverage over tech layoffs recently. I believe tech companies are downsizing right now because their pace of hiring was too fast in the last few years and in order to hire during a very tight labour market, they overpaid for talent. The annualised cost of those decisions becomes very apparent and unsustainable, forcing those companies to reset.
“Meta, Salesforce, Tesla, Robinhood, Amazon, and many more have all recently announced layoffs. When there aren’t as many new jobs to jump to, employees tend to want to stay in their current positions. But that doesn’t mean you can stop re-recruiting and investing in your people. Quite the opposite.
“As a leader, I think it’s important to focus on the long term, and with the transformation that’s taking place in how people work coupled with technological disruption through generative AI, there’s likely to be a great deal of opportunity. Like all leaders, I’m managing to meet the moment which means proceeding with caution over the next six months, but if I look farther out, I’m optimistic that the change the world is undergoing right now will present a great deal of opportunities for the leaders that plan for it and position their businesses and teams for the future.”
lan Price, CEO of BrightHR, comments on the layoffs:
“As the cost-of-living crisis continues to put strain on organisation’s profitability, businesses are seeking ways to make cost savings and protect their long-term financial viability. LinkedIn is no exception as they are reported to be laying off 716 staff worldwide and shutting down their app in China.
“However, employers need to exhaust all other options before making staff redundant. Failing to do so could lead to successful claims of unfair dismissal. There are alternatives to consider, such as removing overtime work, halting recruitment processes, seeking agreement to salary or working hour reductions, and temporary periods of layoff or short time working. It’s important to note here that in the UK, the term “layoff” applies in situations where there is a temporary downturn in work, but the company doesn’t expect the shortage of work to continue, whereas in the US, it commonly refers to the permanent dismissal of staff due to a change in demand or restructure.
Employers must ensure a genuine and meaningful consultation period takes place before confirming any dismissals. In situations where an employer needs to permanently reduce their workforce, it’s important to handle the process with care and sensitivity. At present, it’s unclear how many of LinkedIn’s UK-based workforce are affected by the recent round of redundancies. However, it’s crucial to prioritise employee welfare and explore all possible solutions before resorting to redundancies.”
Amelia Brand is the Editor for HRreview. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at the University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.