Thanks to COVID-19, LinkedIn lets 6% of its workforce go
Microsoft's LinkedIn is an app that professionals use to network with others holding similar jobs. It is also used to help users find a job which is why it might not be used as often as it was before the pandemic hit. Bloomberg says that the app's headcount has been reduced by close to 1,000 people thanks to the global pandemic. More precisely, 960 employees got laid off globally. That works out to about 6% of the app's workforce and was announced to them via an email sent by Chief Executive Officer Ryan Roslansky this past Monday. The layoffs are taking place in LinkedIn's Global Sales and Talent Acquisition departments.
LinkedIn says that the pandemic has affected its Talent Solution business
With COVID-19 doing a number on the global economy, many companies don't need to hire employees. As a result, there is less demand for LinkedIn's Talent Solutions group which offers companies the ability to reach nearly 700 million people at once with a single job post. If a posted resume looks promising, a company can get in touch with a prospect through InMail which is the app's messaging platform.
LinkedIn isn't seeing as much demand from companies seeking qualified employees
Roslansky's email said, "...LinkedIn is not immune to the effects of the global pandemic. Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously. Normally, we would have rolled out our annual plan at the end of June. But as I've shared at the Company All Hands, this year we've been taking our time to get the FY21 plan right given the changing dynamics around us. And in advance of sharing the entire plan, I want to focus today specifically on the most challenging decision we’ve made to move forward with our strategy. To continue adapting and accelerating the company like we have been, we need to ensure we are focusing our efforts and resources against our most strategic priorities to set up the company for success today—and well into the future.
When we took a hard look at the business, we decided we needed to make some hard calls. 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. 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."
In order to save some money, LinkedIn says that it will avoid "duplicating costly platforms, systems and tools internally" by consolidating parts of LinkedIn Talent Solutions with LinkedIn Marketing Solutions. And to save some more money, LinkedIn is going to service small businesses online instead of using teams out in the field. Even after the economy returns to normal, this money-saving idea might remain in place.
Employees being let go will be given the opportunity to keep LinkedIn cellphones, laptops, and any other equipment recently purchased. This will allow these ex-employees to find a job and perhaps make a transition to a new career. Ironically, this is the kind of life-altering employment service that LinkedIn usually provides. The company says, "Affected employees who work in North America, Brazil, and parts of APAC will be made aware of impacts to their roles in the next 24 hours. These departing employees will be with us through August 21st. Impacted employees in Dubai will also be notified in the next 24 hours and will be with us through September 29th. Employees in Ireland, the UK, and Australia have begun consultation about potential impacts to roles and we will continue to work through those locally. Employees who work in France, Sweden, and Spain will learn more about proposed impact to roles during August, and employees in Italy will hear about proposed impacts in September."
To reiterate, these are the only layoffs that LinkedIn is planning and in due time we will see if that is true. In the meantime, you can still install LinkedIn and network with other people who work in the industry. Those with iOS devices can download the app from the App Store or the Google Play Store.