Job connections company LinkedIn will lay off nearly 1,000 employees, representing about 6% of its global workforce, amid a slowdown in hiring due to the coronavirus pandemic, which is putting pressure on many businesses.
Layoffs occur as the unemployment rate in the United States exceeds 13% and as national economies in America, Europe, and Asia contract due to the health crisis.
The coronavirus disrupted commerce globally, shutting down thousands of businesses while forcing others to suspend or fire large numbers of employees while waiting for a recovery. Hiring has decreased dramatically.
In the United States, the number of people who have applied for unemployment insurance has remained high in recent weeks, a sign that many companies are still laying off workers. The unemployment rate in May was 13.3% compared to 14.7% in April, according to the Labor Department.
In a note to employees, LinkedIn CEO Ryan Roslansky said the positions to be cut are in his global sales and talent acquisition departments. He assured that they are the only layoffs the company has among its plans.
Employees who will be laid off in the United States will remain in their jobs until August 21. They will receive at least 10 weeks of severance pay and one year of continuous medical coverage.
The unlisted company is headquartered in Sunnyvale, California.