Microsoft’s LinkedIn announced on Monday that it would cut 668 employees from its engineering, talent and finance teams in a second round of layoffs this year. The trim down due to slowing demand for its recruitment services.
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Reducing the workforce for strategic priorities
The layoffs, which represent about 3 percent of Microsoft’s 20,000 employees, add to the tens of thousands of layoffs in the technology industry this year.
“While we are adapting our organizational structures and streamlining our decision making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers,” LinkedIn said in a blog on Monday.
According to outplacement firm Challenger, Gray & Christmas, the tech sector has cut 141,516 jobs in the first half of this year, up from about 6,000 in the same period last year.
A reflection of trends in tech
Linkedin has long established itself as a professional networking site and makes money by selling ads and charging subscription fees to recruiters and salespeople who use the network to find suitable candidates.
Despite its reputation, LinkedIn has dealt with several revenue challenges. The social network also carried out a round of layoffs in May.
At the time, they said that in order to make decisions faster, they decided to cut 716 positions in the sales, operations and support teams to streamline their operations and eliminate layers.The layoffs are part of the difficulties linkedin is once again facing after a one-year hiatus, and are a common phenomenon across the technology industry.
Layoffs may come with a backlash
While layoffs in the tech industry have become the norm, they also present some challenges. First, after mass layoffs, companies need to rehire the right talent and spend a lot of time and resources training new employees. Secondly, in the process of downsizing, employees may feel lost and dissatisfied, which may lead to a decline in the morale of the company. Finally, in a market downturn, companies need to maintain a sound financial position in order to continue to grow.