LinkedIn cuts 10 percent of workforce
SAN FRANCISCO (Reuters) - LinkedIn, the career-oriented, social networking website, is laying off 10 percent of its staff in the latest sign that the economic slowdown is impacting in Silicon Valley.
The company said it is eliminating 36 positions as part of a restructuring to focus on businesses that are generating revenue.
Kay Luo, the company's senior director of communications, said in an email that the layoffs are intended to ensure that the company remains cash-flow positive.
LinkedIn, with more than 30 million members, has been viewed as something of a social networking success story, especially when compared with other such sites with no proven revenue streams.
The privately held company, with total investments that value it at more than $1 billion, turned a profit last year.
Luo called the job cuts a preemptive move given the current economic climate, and said the company is also moving to reduce expenses.
The decision to cut costs was made by LinkedIn's management, not its investors, she said.
The company's investors include: Sequoia Capital, Greylock Partners, Bessemer Venture Partners and Bain Capital.
LinkedIn unveiled a host of new applications last week in a move to integrate its platform into the daily workings of corporate life.
The company's revenue stream is divided fairly evenly between four categories: premium subscription, advertising, job postings, and a recruiting service.
(Reporting by Gabriel Madway, editing by Leslie Gevirtz)