LinkedIn has announced it will lay off around six percent of its workforce, in part due to a coronavirus-related worldwide hiring slowdown. The Microsoft-owned company is cutting about 960 jobs from its global sales and talent acquisition teams.
The outbreak has disrupted commerce globally, closing thousands of businesses while forcing others to furlough large numbers of employees as they await a recovery. Hiring has slowed dramatically. The number of people applying for unemployment aid has remained stubbornly high in the past several weeks, a sign that many businesses are still shedding jobs and clouding the outlook for jobs. The overall U.S. unemployment rate in May was 13.3%, a decline from 14.7% in April, according to the Labor Department.
In a note to employees at the professional networking site, CEO Ryan Roslansky said that the job cuts will hit global sales and hiring sections of the company. He said no further layoffs are planned.
There are some other factors involved in the decision. LinkedIn is merging two media divisions the Learning Management System and Talent Solutions business to avoid “duplicating costly platforms, systems and tools internally.”
The employees who are leaving can keep their LinkedIn-provided devices and will receive at least ten weeks of severance pay. LinkedIn will provide 12 months of continuing health insurance for those in the US and six months for people elsewhere. It’s also running a six-month program to help people find new jobs and offering support for those on company-sponsored visas. The company may find a place for some of the employees in new roles.
