Microsoft is laying off almost 700 employees at its social network subsidiary LinkedIn. Developers in particular have to look for a new job. This emerges from a statement from the company. But some administrative positions will also be cut.
Difficult And Necessary Measure
A statement from management said that the adjustments mentioned were a “difficult but necessary and regular part of running our company.” Specifically, it was said that there would be exactly 668 positions. The deletions have already been communicated internally.
“As we adapt our organizational structures and streamline our decision-making processes, we continue to invest in strategic priorities for our future and ensure that we continue to deliver value to our members and customers. We are committed to fully supporting and ensuring all affected employees during this transition period “that they will be treated with care and respect,” Microsoft said.
However, the exact reasons for the wave of layoffs were not explained in more detail. It is also unclear whether an attempt was made to accommodate those affected in other parts of the company. There is likely to be a certain need, especially for developers. But ultimately Redmond only announced new cuts in the various departments in July.
Cost Cutting and Offshore Hiring
However, the cuts come at a time when LinkedIn has posted slower year-on-year revenue growth for eight consecutive quarters. In the second quarter, for example, revenue only rose 5 percent, even though the increase in the number of active users accelerated every quarter over the past two years.
This could have motivated management to optimize the balance sheets, especially through wage costs. At the same time, LinkedIn is now set to hire more employees in India, where salaries are lower, as US media reported.
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