Microsoft-owned career networking platform LinkedIn said it is cutting about 6% of its workforce, or 960 jobs, citing the disastrous effects of the COVID-19 crisis on the hiring market.
In a note to employees, chief executive officer Ryan Roslansky said the cuts were being made across the company’s global sales and talent acquisition organizations.
“While this decision will help us ensure that our company and platform are resilient and emerge stronger to reach our vision, there is simply no harder decision to make as a CEO,” Roslansky said.
Roslansky became CEO of the company June 1 after being promoted from senior vice president of product.
Also in the note, he said the virus was having a “sustained impact on the demand for hiring” and will be the only layoffs the company is planning.
LinkedIn is providing employees 10 weeks of severance pay and 12 months of continuing health insurance through COBRA. It has also created a six-month career-transition assistance program.
In lieu of bonuses for the 2020 fiscal year, the company said it is making a payment at full target for bonus eligible employees. Departing employees would also be eligible for stock vesting in August.
As of last month, well over 30 million Americans were receiving unemployment benefits, roughly five times the number during the peak of the Great Recession.
Even though the June jobs report showed a net gain of 4.8 million jobs, an estimated 3.7 million jobs lost during the global pandemic are not expected to come back. Many tech companies have been insulated from fallout, but LinkedIn’s business is connected to the wider market for talent.