LinkedIn, the world’s largest professional networking platform, is making headlines as it announces a significant reduction in its workforce. Nearly 700 employees are set to lose their jobs as the company has faced slowing revenue growth over the past two years. The bulk of these job cuts are concentrated within the platform’s core engineering group, raising questions about the future of the company and the challenges it’s currently facing.

The cuts come as year-over-year revenue growth has slowed for eight straight quarters on the business-focused social network. Microsoft reported in July that it expanded by just 5% in the second quarter, despite membership growth having advanced each quarter for the previous two years.

For years, LinkedIn has been the go-to platform for professionals and job seekers looking to connect, network, and explore new career opportunities. However, in recent times, the company has been grappling with slowing revenue growth. Despite experiencing robust growth for many years, LinkedIn’s growth rate began to taper off, primarily due to increased competition in the online professional networking space.

LinkedIn’s core revenue streams, which include Talent Solutions, Marketing Solutions, and Premium Subscriptions, started to show signs of stagnation. The company had to reassess its strategy to remain a top player in the market.

LinkedIn executives Mohak Shroff and Tomer Cohen wrote in a memo. “As we continue to execute on our FY24 plan, we need to also evolve how we work and what we prioritize so we can deliver on the key initiatives we’ve identified that will have an outsized impact in achieving our business goals.”  “This means adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership and driving improved efficiency and transparency through reduced layering.”

CWEB News Summarized Breaking, Business and Stock Newsletter October 17, 2023