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.