LinkedIn cuts 10 percent of its workforce

Business-focused social-networking site cuts 36 jobs to focus on revenue-producing areas a month after raising $22 million in additional funding.

Business-focused social-networking site LinkedIn announced Wednesday that it is cutting 10 percent of its workforce, or about 36 jobs, as part of a restructuring to focus on its revenue-producing businesses.

Company representatives did not immediately respond to requests for comment.

The layoffs follow LinkedIn's announcement last month that it had raised an additional $22.7 million in funding from Goldman Sachs, SAP, McGraw-Hill, and longtime investor Bessemer Venture Partners. That round followed a $53 million series D funding round in June that gave LinkedIn a valuation of $1 billion. The latest round of funding brings the total funds raised to just more than $100 million.

The job cuts also come on the heels of the unveiling last week of LinkedIn's new developer platform , as well as third-party apps that aid in trip tracking, file sharing, and presentations.

The site, which claims about 30 million members, is small in comparison with social-networking sites Facebook and MySpace. But the average LinkedIn member is 41 years old and earns about $110,000 a year.

Its white-collar focus--billionaire Bill Gates is proud of his profile --means that LinkedIn can attract premium advertisers and charge quite a bit for ads--reportedly $75 per thousand impressions.

Featured Video
6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

The problem with Amazon Dash buttons

Limits on choice mean new shopping gadget won't click for everyone. Bridget Carey explains how the buttons work, and the rule changes for sharing your Prime perks with others.

by Bridget Carey