In a bid to streamline operations, Microsoft’s LinkedIn has announced a significant reduction in its workforce, axing 668 jobs, with engineers taking the hardest hit. LinkedIn published this decision in a brief blog post, and it is part of a broader strategy for its organizational restructuring.
The decision will also affect 137 engineer management roles and 38 product staff positions.
According to the memo presented by LinkedIn’s SVP of Engineering Mohak Shroff and CPO Tomer Cohen, the research and development department will do away with 563 roles. The majority of the job reductions are directly from the engineering teams, which brings the total to 388.
However, Microsoft announced a few exceptions that would be retained to fill critical gaps in their ambitious roadmap. The non-engineering teams are likely to have the remaining 105 job cuts.
LinkedIn Justifies its Decision To Lay Off Employees
LinkedIn explained that they had to make such decisions for “adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership, and driving improved efficiency & transparency through reduced layering”.
Evidently, the company is striving to minimize layers within the organization to enhance transparency and streamline operations.
Microsoft also pledged to slash 10,000 employees by the end of the third quarter.
Microsoft, the parent company of LinkedIn, reported a slight decrease in profits for its 2023 fiscal year ending on June 30, at $72.4 billion. The reduction comes after several waves of layoffs earlier this year.
In July, the company commenced its second wave of layoffs. The company refrained from disclosing the number of job cuts in the latter round. Despite these efforts, Microsoft is yet to witness a rebound in its profits.
The uncertainty over the dicey job market didn’t end with the LinkedIn division of Microsoft. A post from a Microsoft employee on a blind thread suggests more layoffs in the near future.
Earlier this year, LinkedIn exited the Chinese market, which resulted in 716 job losses. This move was a part of a broader strategy of Microsoft to focus on profitable and strategically important markets.
Microsoft’s Share Price Reaches All-Time High
While the series of job cuts by Microsoft left its employees frustrated, the share prices of the company soared to an all-time high. This reflects the financially resilient posture of the company, even in the wake of an unexpected IRS bill of $29 billion related to unpaid taxes.
Besides, the big tech company demonstrated its strong financial position by acquiring the video game studio Activision-Blizzard in a $69 billion deal.
As Microsoft continues to adapt its structures and investments, it presents a complex ecosystem with strategic acquisitions, financial resilience, and workforce challenges.
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