© Reuters.
Microsoft (NASDAQ:)’s LinkedIn (NASDAQ:MSFT) is set for a second round of significant layoffs this year, affecting approximately 668 employees from various teams. This follows a previous wave of job cuts in May that resulted in 716 layoffs. The total number of layoffs now stands at 1,384, representing about 3% of the company’s global workforce.
The decision comes as part of a broader restructuring effort aimed at streamlining decision-making and adapting organizational structures. LinkedIn, which boasts a user base of around 950 million, reported a 5% growth rate last quarter. The company remains committed to delivering value to its members and investing in strategic growth areas, such as AI-powered collaborative articles, identified as the fastest-growing traffic driver.
According to Microsoft’s full-fiscal-year earnings report from July 2023, LinkedIn generated $15 billion in revenue. However, the company has been grappling with slowing revenue growth, prompting these organizational changes.
Microsoft, which includes LinkedIn in its portfolio, is expected to release fiscal Q1 reports on October 24. Market analysts anticipate earnings of $2.65 per share on revenues of $54.52B. The Wall Street consensus maintains a Strong Buy rating for MSFT stock and predicts a price target of $396.94 per share, indicating an upside potential of 18.88%.
This news comes amid reports of over 242,000 tech sector layoffs in 2023 by Layoffs.fyi. The ongoing restructuring at LinkedIn is reflective of broader trends within the tech industry as companies adapt to changing market dynamics and seek efficiency in operations.
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