Business Networking Website, LinkedIn, is downsizing its workforce by about 6 percent, affecting 960 employees worldwide. The company has been hit by firms recruiting fewer staff due to the Corona Virus pandemic.
The Microsoft Owned company cited a weak job market and reduction in advertising revenue as the reason for the lay-offs. The announcement comes as various sectors in the formal and informal sector cut jobs following the economic crisis brought about by the Corona Virus pandemic.
LinkedIn Chief Executive, Ryan Roslansky said the company was “not immune to the effects of the pandemic.”
“Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously.”
The first half of 2020 has seen thousands of job cuts across different sectors worldwide as businesses grapple with reduced demand occasioned by Covid-19 guidelines.
Economists and Human resource experts said that the job cuts at LinkedIn were evidence pointing to a stall in hiring for white-collar jobs.
“It’s not a great sign,” said Martha Gimbel, senior manager of economic research at Schmidt Futures. “You’re really seeing companies process that this is not a short-run crisis — this is a long-run crisis.” She said businesses are “now realizing that our public health and the health of our economy are inextricably intertwined.”
In Kenya, a recent report by GeoPoll showed that at least 60 percent of jobs had been affected by the pandemic.
The study tallies with a Kenya National Bureau of Statistics (KNBS) study that released its report last month. In the report, 61 per cent of Kenyans reported being out of work due to the Corona virus, an increase from 50 per cent in May.However, 77.8 per cent of the individuals out of work reported being unsure if and when they would resume.
Many companies worldwide have resorted to Job cuts and salary reduction to stay afloat as the effects of the pandemic bite.
There was a slight boost in LinkedIn Jobs in May and June, possibly due to the perceived reopening of the world economy, but even that plummeted by late June and July as the virus numbers soared afresh.
The lay offs at LinkedIn are expected to cut across the group’s global sales and recruitment divisions.
“I want you to know these are the only layoffs we are planning,” Mr Roslansky said.
He added that LinkedIn would be redirecting its efforts to other parts of the business. This would result in some job opportunities and the firm would “work with employees impacted by today’s announcement to explore these opportunities”.