LinkedIn has announced it will cut 960 jobs from its global workforce, citing pressure put on the company from the pandemic as it hits its recruiting products and services.
The move means that around 6% of LinkedIn’s total employees around the world will be cut, with the majority of cuts set to hit its sales and hiring divisions.
CEO Ryan Roslanksy made the announcement on LinkedIn, stating that the company will provide its employees with more than two-months severance payments, and health care plans for the remainder of 2020.
He stated that the aim of the restructuring plan is for LinkedIn to avoid “duplicating costly platforms, systems and tools internally,” switching its sales teams to focus more on small business customers.
Departing staff members will be eligible for LinkedIn’s August stock vesting, and the company has said that it plans on paying its company bonuses out “at full target for those who are bonus-eligible.”
In addition, LinkedIn says that when it comes time to hiring new staff, the company will prioritise recently cut staff members for the roles, and allow them to keep any devices they’ve been given through the company for personal use to find new employment.
For those departing, LinkedIn will offer six-months of career transition assistance, and has created an opt-in directory for staff members to join and “showcase their experiences and be more discoverable to potential employers.”
“LinkedIn is not immune to the effects of the global pandemic,” Roslansky wrote. “Our Talent Solutions business continues to be impacted as few companies, including ours, need to hire at the same volume they did previously.”
“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 per cent of our employee base, across our Global Sales and Talent Acquisition organisations.”
Roslansky continued to explain that “I’m sharing this news today so that everyone has the complete picture of these changes and why we are making them.”
“I want you to know these are the only layoffs we are planning,” Roslansky wrote.
The company has notified staff members impacted by job cuts and invited them to an online meeting to talk about the subsequent actions they can take.
“If you don’t receive a meeting invite, you are not directly impacted by this change,” LinkedIn’s CEO wrote.
LinkedIn is pivoting its business model temporarily away from talent acquisition services in favour of evolving “the way we work with our talent media customers and small businesses.”
“While this decision will help us ensure that our company and platform are resilient and emerge stronger to reach our vision, there is simply no harder decision to make as a CEO,” he says.