Microsoft-owned LinkedIn will layoff 960 employees, 6 percent of its workforce, as the professional networking site struggles with falling demand for its recruitment services in the wake of the Chinese coronavirus pandemic.
LinkedIn Chief Executive Ryan Roslansky says that the job cuts will be made throughout the company’s global sales and talent acquisition teams, according to a statement published on the company’s website.
“LinkedIn is not immune to the effects of the global pandemic,” said Roslansky. “Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously.”
The company says that while it “got ahead” of struggles it faced in March, “we are entering our new fiscal year with a greater sense of urgency than ever to stay ahead of the paradigm shifts our members are facing.”
Therefore, Roslansky says that LinkedIn’s latest strategy will have to incorporate “the most challenging decision we’ve made.”
“After weeks of discussion and deliberation, the executive team and I have made the extremely difficult decision to reduce approximately 960 roles, or about 6 percent of our employee base, across our Global Sales and Talent Acquisition organizations,” said Roslansky.
“I’m sharing this news today so that everyone has the complete picture of these changes and why we are making them, and I want you to know these are the only layoffs we are planning,” he added.
The Microsoft-owned professional networking site makes a lot of its money through ads and fees paid for by recruiters.
The announcement added that laid-off LinkedIn employees will receive a minimum of ten weeks of severance pay and up to 12 months of continuing health-care coverage.
Affected U.S.-based employees will be notified this week.