Silicon Valley-based LinkedIn to cut about 960 jobs, or 6% of its global workforce, as the COVID-19 pandemic is having a sustained impact on demand for its recruitment products. it is mainly used for professional networking, including employers posting jobs and job seekers posting their CVs.
Microsoft-owned LinkedIn has offices in more than 30 cities around the world and employs 16,000 people. The job cuts are being made in the group’s global sales and hiring divisions.
In the United States alone at least 3.7 million jobs have disappeared as a result of the pandemic. Many major tech companies have avoided the brunt of the fallout, as worldwide work-from-home requirements create more demand for their products. But LinkedIn’s business model revolves around helping people search for jobs, connect with other professionals and build their resumes — all features that have lost value as companies cut workers, and freeze hiring.
LinkedIn Chief Executive Ryan Roslansky said, “Jobs will be cut across sales and hiring divisions of the group globally. Announcing the plan in a message posted on LinkedIn’s website, the company would provide at least 10 weeks of severance pay as well as health insurance for a year for U.S. employees, and will hire for newly-created roles from laid-off staff.”
He added that LinkedIn would be investing in other parts of the business which would result in some job creation and the firm would “work with employees impacted by today’s announcement to explore these opportunities”.
He further said, “I want you to know these are the only layoffs we are planning, Affected staff, who have not yet been told, would be able to keep company-issued cell phones, laptops, and recently purchased equipment to help them work from home while making career transitions.”
So far this week India’s biggest airline IndiGo has said it will lay off 10% of its staff and UK retailer Marks & Spencer has announced 950 job cuts.
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