Linkedin AI Strategy

Today, LinkedIn announced the incoming layoff of about 668 people across the company after cutting 716 in May. LinkedIn has about 19,500 employees.

Founded in 2002 and purchased by Microsoft in 2016, LinkedIn has over 950 M members and 58 M registered companies. Its revenue surpassed $15 billion for the first time. The last fiscal year ended on June 30, 2023. At the same time, in the fourth quarter, its revenue increased 5% year-on-year, compared to 10% in the previous quarter.

From a strategy point of view, there is always a trade-off. Could this be a trade-off between human resources and AI tools? In the Q4Y23 earning report, Microsoft reported “We continue to use AI to help our members and customers connect to opportunities and tap into the experiences of experts on the platform. Our AI-powered collaborative articles are now the fastest-growing traffic driver to LinkedIn.”

LinkedIn announced the AI-powered 2024 recruiter release and AI-powered LinkedIn learning for premium subscribers in early October. What would be Microsoft’s next move that makes human resources less valuable?