HomeWinBuzzer NewsMicrosoft Announces Organizational Restructuring with Layoffs in LinkedIn, Engineers Bearing the Brunt

Microsoft Announces Organizational Restructuring with Layoffs in LinkedIn, Engineers Bearing the Brunt

LinkedIn is once again losing jobs amid Microsoft's company-wide cuts, with hundreds leaving the engineering team.

-

Microsoft has initiated another bout of layoffs, this time targeting numerous teams across its subsidiary, LinkedIn. According to a brief blog post, 668 jobs are to be slashed, primarily from LinkedIn’s engineering teams, Per an internal memo from LinkedIn’s SVP of Engineering, Mohak Shroff, and CPO Tomer Cohen, the engineering unit will incur the brunt of these job cuts with 388 roles being discontinued.

Details of the Layoff Plan

The downsizing affects positions in engineering, product, talent, and finance teams. Under this change, 563 roles in LinkedIn research and development will be removed, including 137 managerial positions in engineering and 38 product-related jobs. The dismissed workers will be offset by the hiring of a minor number of people necessary to fill essential road map gaps. The residual 105 positions expected to be terminated, presumably, will be drawn from non-engineering teams.

Driving Organizational Reform for Greater Efficiency

The rationale behind this change is to continue the adaptation of Microsoft’s organizational structure to amplify agility and accountability. Improved efficiency and transparency will be promoted through the reduction in layering, thus establishing clear-cut ownership. This move serves to align with Microsoft’s broader corporate strategy, which also witnessed a net profit of $72.4 billion in its fiscal year 2023, albeit being deemed as a minor dip in comparison to the previous year’s profits.

Further Job Reductions Expected

Speculations are rife regarding the probabilities of further layoffs being announced by Microsoft. The company had previously revealed plans to lay off 10,000 workers by the end of the third quarter of its fiscal year. LinkedIn also withdrew operations from China earlier this year, leading to slicing off 716 roles within the company. Microsoft has already cut LinkedIn Jobs during the year. 

Despite a marginal decline in profit in FY23, Microsoft managed to finalize its massive $69 billion acquisition of video game studio Activision-Blizzard. Irrespective of the layoffs and the frozen pay for existing employees, Microsoft’s share prices seem largely undeterred with Wall Street being apparently in favor.

SourceLinkedIn
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

Recent News