LinkedIn CEO tells staff company will cut jobs: ‘We need to reinvent how we work'

LinkedIn plans to lay off employees across several teams as the Microsoft-owned professional networking company reorganizes and cuts costs.

"As part of our regular business planning, we've implemented organizational changes to best position ourselves for future success," a LinkedIn spokesperson said in a statement Wednesday.

The cuts are expected to affect employees in LinkedIn's global operations, marketing, engineering and product teams, according to a memo from CEO Daniel Shapero published by Business Insider.

LinkedIn, which is headquartered in Sunnyvale, has about 17,500 employees.

Microsoft said last month that LinkedIn revenue rose 12% year over year in the quarter that ended March 31.

In the memo, Shapero said LinkedIn needed to "operate more profitably" and shift investments toward areas including infrastructure. He said the company would reduce spending on marketing campaigns, vendors, customer events and underused office space.

"We need to reinvent how we work, with agile teams focused on our highest priorities, and by shifting investments toward areas such as infrastructure to fulfill our mission and vision over the long term," Shapero wrote in the memo. "This requires hard prioritization and tradeoffs."

The layoffs also come less than a month after a leadership change at LinkedIn.

Shapero, previously the company's chief operating officer, became CEO in April and reports to Ryan Roslansky, who now oversees LinkedIn and Microsoft Office.

It was not immediately clear how many Bay Area employees would be affected.

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