From Startup Fortune · · 1m 10s
LinkedIn Cuts 875 Jobs Despite Record Revenue
LinkedIn cuts 875 jobs even after posting its best revenue quarter ever.
In brief
LinkedIn cuts 875 jobs even after posting its best revenue quarter ever. LinkedIn eliminated 875 jobs (5% of its workforce) while reporting record quarterly revenue, shifting funds toward AI development. Originally reported by Startup Fortune.
LinkedIn reports record revenue
LinkedIn posted its biggest quarterly revenue ever at $5 billion, with sales up 12% year over year.
875 jobs eliminated
The company notified roughly 875 employees that their jobs were being eliminated, about 5% of its global headcount of 17,500.
New CEO explains cuts
New CEO Daniel Shapero stated LinkedIn is scaling back investments in marketing, vendor spend, customer events, and underutilized office space.
AI-focused reallocation
The company redirected funds toward AI development, not maintaining headcount while revenue climbed.
Engineering teams affected
Engineering and product teams, usually protected during layoffs, were among the first to be cut.
Microsoft's role in reporting
Microsoft disclosed LinkedIn's results as part of its own fiscal fourth quarter, ending June 30.
What happens next
The savings from layoffs will be reinvested into AI tools to see if they improve products or reduce the company size.
The short version
LinkedIn eliminated 875 jobs (5% of its workforce) while reporting record quarterly revenue, shifting funds toward AI development.
