Microsoft-owned LinkedIn is laying off 6% of its employee base as fewer companies use its platform due to a reduced need for hiring amid the pandemic.
The cuts affect 6% of the company’s workforce, LinkedIn CEO Ryan Roslansky wrote in a note to employees.
“LinkedIn is not immune to the effects of the global pandemic,” he wrote. “Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously.”
San Francisco, Calif.-based LinkedIn has adapted over the past few months during the economic crisis, rolling out virtual event products and other new features. Roslansky cited a “record numbers of hours spent learning on the platform” and “strong member engagement,” but the company still was forced to cut staff.
The layoffs affected the company’s Global Sales and Talent Acquisition organizations. Roslansky, who replaced Jeff Weiner last month, said there are no other layoffs planned.
“In GSO and GTO, there are roles that are no longer needed as we adjust to the reduced demand in our internal hiring and for our talent products globally,” he wrote.
LinkedIn is offering laid off employees a minimum of 10 weeks severance pay, 12 months of health insurance, tech equipment, and more. It will also look to place affected workers in newly-created roles across the company.
“This is painful to go through as an organization, but a company with a vision as bold as ours will have to make difficult decisions,” Roslansky wrote. “And since our vision is more important than it ever has been given all that’s going on in the world, I’m confident we’ll emerge more resilient and stronger than ever.”
Microsoft paid $26.2 billion to acquire LinkedIn in 2016.
The Redmond, Wash.-based tech giant made major cuts to its MSN editorial team earlier this month and has slashed jobs across the company as part of its annual fiscal year-end business review. Its fiscal year ends June 30, and it’s common for Microsoft to restructure some of its operations in conjunction with the annual milestone. Overall, the cutbacks this year appear much smaller than the thousands of employees laid off by the company in some years past.
While the pandemic has forced hundreds of tech startups to trim staff, giants such as Microsoft and Amazon have mostly avoided large layoffs thus far.
