LinkedIn is cutting its workforce for the second time this year. This time, up to 668 employees within the company will be laid off, part of what the company describes as a cost-cutting measure, optimizing its resources to maximize profits through a smaller workforce.
In plain terms, these layoffs seem to be driven by the desire to make more money and distribute it among fewer workers. It’s noteworthy that in 2023, over 1,200 jobs have been eliminated while the company achieved a historical record of earnings, totaling $15 billion in the last fiscal year, as explained by The Verge.
Layoffs are soaring in the technology sector
LinkedIn’s case is not unique, as there are more companies undergoing mass layoffs. In fact, Microsoft laid off 276 employees last summer, adding to the massive restructuring that led to the dismissal of over 10,000 workers earlier in 2023. Similarly, Twitter has also significantly reduced its workforce due to austerity measures implemented by Elon Musk in a company facing losses and a downward spiral.
Meanwhile, LinkedIn has been actively working on advancing Artificial Intelligence, aiming for increased productivity through these systems, which could result in the company replacing numerous jobs with AI. Similarly, they are also working on implementing these tools into the platform’s user content, following the current trend in technology, which is focused on these systems.
The challenges for workers in the industry
One of the main threats to employment currently lies in Artificial Intelligence. Its meteoric advancement in recent years has created tools capable of replacing the work of many employees. Despite being part of the technology sector or other skilled fields, these employees have witnessed their jobs being eliminated so that Artificial Intelligence can perform those tasks.
It’s not easy to determine the long-term impact, but in the short term, many changes are already happening that were previously unimaginable. It remains to be seen whether regulations will be introduced to limit the competencies of Artificial Intelligence, or if companies will continue to have complete freedom to replace human capital to maximize the benefits from the productivity these systems generate.
