Microsoft's LinkedIn announced nearly 700 layoffs, mostly in the engineering department

On October 17th, according to a memo viewed by the media, Microsoft's LinkedIn announced on Monday the layoffs of nearly 700 employees, most of whom came from the engineering department. According to an anonymous insider, the layoffs also involve the company's finance and human resources departments

On October 17th, according to a memo viewed by the media, Microsoft's LinkedIn announced on Monday the layoffs of nearly 700 employees, most of whom came from the engineering department. According to an anonymous insider, the layoffs also involve the company's finance and human resources departments.

This layoff action is due to LinkedIn's eight consecutive quarters of slowing annual revenue growth. Microsoft stated in July that although membership growth has accelerated every quarter in the past two years, it only grew by 5% in the second quarter.

In addition to implementing the 2024 fiscal year plan, we also need to improve our work methods and priorities to achieve the key initiatives we have identified, which will have a significant impact on achieving business goals, "wrote Mohak Shroff and Tomer Cohen, executive executives at LinkedIn This means that we need to adjust our organizational structure to increase flexibility and accountability, clarify ownership, and improve efficiency and transparency by reducing hierarchy

Microsoft announced the layoffs of 10000 employees in January this year and conducted additional layoffs in July. Due to a slowdown in overall revenue growth at Microsoft, CEO Satya Nadella had to lower the company's costs.

The new layoffs are in addition to the 10000 layoffs in January this year, a spokesperson said.

According to insiders, LinkedIn is currently increasing recruitment efforts in India.

In a blog article, LinkedIn stated: "Although we are adjusting our organizational structure and decision-making processes, we will continue to invest in future strategic priorities to ensure value is provided to our members and customers." "We promise to provide comprehensive support to affected employees during this transitional period and ensure that they receive care and respect

The following is the complete memorandum:

Team members:

In this challenging period, we did not expect to share this important news with everyone, but in order to clarify the situation, Tomer and I would like to share some information about the changes in our organization.

While implementing the 2024 fiscal year plan, we also need to improve our work methods and priorities to achieve the key initiatives we have identified, which will have a significant impact on achieving our business goals. This means that we need to adjust our organizational structure to improve flexibility and accountability, clarify ownership, and improve efficiency and transparency by reducing hierarchy.

These decisions resulted in a reduction of 563 positions in the R&D department. Specifically, there has been a decrease of 137 engineering management positions and 38 product positions. In addition, in order to better match the resources planned for the 2024 fiscal year, we will reduce 388 positions in the engineering team and open a small number of new positions to fill key gaps in our ambitious roadmap.

Individuals directly affected by these changes will receive a schedule invitation titled 'Must Attend: R&D Job Reductions' within the next hour. This meeting will provide you with detailed information on how to receive support during the transition period.

If you have not received this invitation, please look forward to the product or engineering manager in your department soon communicating with you about specific information about the organizational structure and how we will work together to address these changes.

Tomer and I have carefully considered these decisions, taking into account the long-term needs of the company, and recognizing the valuable role that each individual affected has played in the growth and success of LinkedIn.

In the coming days, we will focus on supporting each other and discussing how we will move forward guided by our vision, mission, and values. At this critical moment, we must support colleagues who have experienced this transformation. Let us continue to maintain empathy and understanding during this difficult period, and use this as the cornerstone of our mutual support.

(Translated by Chen Chen)