According to a new Worker Adjustment and Retraining Notification (WARN) filing, 606 LinkedIn employees were informed last week that they would be permanently laid off, reported the New York Post. The layoffs are scheduled to take effect on July 13.
According to the report, most of the affected employees work in LinkedIn’s office in Mountain View, where 352 jobs are being cut. Another 66 remote employees based in the same city were also included in the layoffs.
Additional layoffs include 108 employees in San Francisco, 59 employees in Sunnyvale, and 21 employees in Carpinteria.
The job cuts were signalled earlier this month in an internal memo from LinkedIn CEO Daniel Shapero. In the memo, Shapero said the company needed to reorganise its operations and focus resources on long-term priorities.
“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,” he wrote.
Shapero also confirmed that LinkedIn would reduce positions across several departments, including GBO, Marketing, Engineering, and Product. “Today I’m sharing the difficult decision that I, along with our leadership team, have made to reduce roles across GBO, Marketing, Engineering and Product,” he stated.
The memo added that LinkedIn planned to reduce spending in several areas, including marketing campaigns, vendor costs, customer events, and office space that was not being fully used.
Shapero said the company wanted to focus resources on projects and teams expected to have the broadest impact and highest return on investment.
Reports suggest more layoffs could follow. Reuters reported last week that LinkedIn was planning to cut about 5% of its workforce. Based on the company’s reported workforce of 17,500 employees, that would equal roughly 875 jobs. However, LinkedIn has not confirmed whether additional layoffs beyond the 606 announced in the WARN filing will take place.
The layoffs come only weeks after LinkedIn reported 12% year-over-year revenue growth in its third-quarter earnings statement. The restructuring also comes shortly after Shapero became LinkedIn’s CEO in April. Before taking the role, he served as the company’s chief operating officer.
LinkedIn’s parent company, Microsoft, has also recently announced workforce reductions through voluntary buyouts. The program could affect about 7% of Microsoft’s 125,000 employees, or approximately 8,750 workers.
Microsoft said the buyouts would be available to employees seeking early retirement if their combined age and years of service exceeded 70. For example, an employee aged 58 with 12 years at the company would qualify. The company said the program is intended to reduce headcount without carrying out another round of layoffs.
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