LinkedIn, a leading professional networking platform owned by Microsoft Corp., recently faced workforce reduction as it laid off 187 employees in the Bay Area. The company’s decision to downsize its workforce came as a response to the challenges it encountered, particularly with its flagship lager Bud Light, which experienced declining sales.
The job cuts affected employees across various locations, including the headquarters in Sunnyvale, offices in Mountain View and San Francisco, and some remote workers connected to the corporate base. Notably, the layoffs were not provided with the usual 60-day notice required by state and federal law, leading to questions about how LinkedIn complied with the regulations. However, the company spokesperson, Leonna Spilman, assured that they followed the applicable laws.
CEO Ryan Roslansky had previously warned in a blog post about the company’s intention to let go of 716 people companywide and discontinue its China-focused jobs app. As part of the restructuring, LinkedIn aimed to reduce its sales, marketing, and corporate teams while redirecting resources to other areas. The company planned to offer U.S. employees severance pay, career counseling services, and continued health coverage for a certain period to support them during the transition.
This was not the first time LinkedIn underwent job cuts in 2023. In February, the company had already let go of 91 employees in the Bay Area. Additionally, parent company Microsoft also implemented staff reductions, laying off over 160 workers in three separate rounds of cuts earlier in the year.
The changes come at a challenging time for LinkedIn, as it faces declining Bud Light sales following a conservative boycott due to its March Madness partnership with transgender social media influencer Dylan Mulvaney. The company’s stock performance has been impacted, with shares falling more than 2% this year while the S&P 500 enjoyed a nearly 20% gain.
Despite the layoffs, LinkedIn remains committed to its mission of providing a seamless and innovative platform for professionals to connect and grow. The company aims to navigate these changes strategically and continue brewing great beer for everyone while earning its place in the moments that matter.
