Microsoft-owned LinkedIn announced Monday that it cut almost 700 employees, with most coming from the engineering organization, according to a memo viewed by CNBC. Cuts also came in the company’s finance and human resources groups, according to a person familiar with the situation who asked to remain unidentified because they were not authorized to discuss the changes.

The reductions come as the business-oriented social network has seen year-over-year revenue growth slow for eight consecutive quarters. It grew just 5% in the second quarter, even as membership growth has accelerated each quarter for the past two years, Microsoft said in July.

CNBC posted the full memo from Microsoft to its team. Here is some of that memo:

Team,

We did not expect to share this important update with you all in the midst of such challenging times, but in the spirit of creating clarity, Tomer and I wanted to share some news regarding the changes we are making to our orgs.

As we continue to execute on our FY24 plan, we need to also evolve how we work and what we prioritize so we can deliver on the key initiatives we’ve identified that will have an outsized impact in achieving our business goals. This means adapting our organizational structures to improve agility and accountability, establishing unambiguous ownership, and driving improved efficiency & transparency through reduced layering.

These decisions result in the reduction of 563 roles across R&D. Broken down there are 137 Engineering management roles and 38 Product roles being reduced. Additionally, there will be 388 role reductions across our Engineering team in an effort to better align resources to our FY24 plan, and we will open a small number of new roles to fill critical gaps in our ambitious roadmap.

For those who are directly affected by these changes, you will receive a calendar invitation within the next hour titled: “Required Attendance: R&D Role Reductions”. This meeting will provide you with detailed information on how we will support you through this transition.

If you do not receive this invitation, expect communication from your Product or Engineering Executive leader soon with specifics pertaining to your organization and how we will collectively navigate through these changes

Tomer and I made these decisions with deep consideration towards the long-term needs of our business and with the acknowledgement that every affected individual has played a valuable role in the growth and success of LinkedIn…

CNN reported that LinkedIn is laying off 688 people across its engineering, product, talent and finance teams as part of a broader restructuring, the social media platform announced Monday.

In a blog post, the social media site for professionals said it is making changes to its organizational structure and streamlining its decision making.

“Talent changes are a difficult, but necessary and regular part of managing our business,” the company said. Microsoft bought LinkedIn in 2016.

According to CNN, LinkedIn already cut 716 positions in May and shut down its jobs app in mainland China. That decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said in a letter to employees.

In my opinion, it is always a sad day when a large company decides to layoff workers. Suddenly, these people are out of a job, and may or may not get help finding a new one. This sort of situation could put families in need of financial help, and it feels unfair to spring that on so many employees right before the holidays.

LinkedIn, the social media network owned by Microsoft Corp that focuses on business professionals, said on Monday it would cut 717 jobs as demand wavers, while also shutting down its China-focused job application, Reuters reported.

LinkedIn, which has 20,000 employees, has grown revenue each quarter during the last year, but it joins other major technology companies including its parent in laying off workers amid a weakening global economic outlook.

According to Reuters, LinkedIn makes money through ad sales and also by charging for subscriptions to recruiting and sales professionals who use the network to find prospects.

In a letter to employees, LinkedIn CEO Ryan Roslansky said the move to cut roles in its sales, operations and support teams was aimed at streamlining the company’s operations and would remove layers to help make quicker decisions.

Roslansky also said n the letter the that the changes would result in creating 250 new jobs. The spokesperson said that employees affected by the cuts would be eligible to apply for those roles.

LinkedIn posted “A message from LinkedIn’s CEO” on its LinkedIn Pressroom. Here are some key parts:

• As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees.
• If your role is directly impacted by this decision, you will receive a calendar invitation within the next hour for a meeting with a leader from your team and a representative from our Global Talent Organization (GTO).
• First, we’ll be refocusing our Global Business Organization for the next phase of growth. Based on the cycle noted above, we’ve learned we need to re-organize for greater agility and growth in FY24 and beyond and are focused on three themes, reorganizing how work gets done, becoming more agile, and aligning our teams for growth.
• Second, we’ll focus our China Business on our Go Global strategy. We’ll focus our China strategy on assisting companies operating in China to hire, market, and train abroad. This will involve maintaining our Talent, Marketing, and Learning businesses, while phasing out InCareer, our local jobs app in China, by August 9, 2023.

TechCrunch reported that LinkedIn Ryan Roslanky said the decision to shutter the standalone China app, called InCareer, was because of “fierce competition and a challenging macroeconomic climate.”

According to TechCrunch, LinkedIn is the latest tech company, ranging in size from Google and Amazon to startups, to announce layoffs. Its parent company, Microsoft, said it was cutting 10,000 jobs, or nearly 5% of its global workforce, in January.

Laid off employees who are covered by U.S. benefits will get severance pay, continuing health coverage and career transition services, while employees outside the U.S. will get benefits that align with local labor laws and practices.

In my opinion, I think it is unethical to suddenly fire over 700 employees, all at once. It is good that they are getting severance pay, health care, and transition services to potentially help them find another job. It is terrible that so many people are going to have to struggle once those benefits disappear.