Linkedin website

JuliusKielaitis/Shutterstock (Licensed)

‘I’m shocked they bring in that much money’: LinkedIn hits record profits for 2023. So why did it just lay off 700 workers?

'A good portion of their business is collecting and selling data.'


Jack Alban


Posted on Oct 18, 2023

LinkedIn, the professional networking platform, has been a staple for job seekers, recruiters, and industry professionals for years. However, a recent Reddit post by user u/bogiesforfree has sparked a heated debate about the company’s monetization strategies and its recent decision to lay off almost 700 workers despite hitting record profits.

The post, titled “LinkedIn hit record profits this year. Its response? Lay off almost 700 workers,” sheds light on the company’s financial health. According to LinkedIn’s recent report of business highlights, the platform saw a 5% increase in revenue year over year, surpassing $15 billion for the first time. Additionally, membership has been on the rise for the past eight quarters, with accounts now exceeding 950 million.

LinkedIn hit record profits this year. Its response? Lay off almost 700 workers.
byu/bogiesforfree inantiwork

However, despite these impressive figures, LinkedIn announced layoffs in May, citing “shifts in customer behavior and slower revenue growth.” This decision left many wondering: How does LinkedIn make its money?  And why would they lay off so many despite such growth?

Reddit users were quick to chime in with their insights. One user pointed out the costs associated with job postings, noting that LinkedIn suggests spending between $35-$50 a day, leading companies to spend thousands monthly. Another user highlighted LinkedIn’s potential data-selling practices, while others discussed the platform’s premium subscription services, which allow users to message others directly. The cost of this service has been a point of contention, with one user exclaiming, “Their useless premium BS is up to $70 now? Why would anyone want to pay $70 every month for this garbage?”

Tracing the Evolution of LinkedIn’s Pricing

Since its inception, LinkedIn has undergone various pricing changes, especially concerning its premium memberships. Initially, the platform offered basic features for free, with additional services available at a premium. Over the years, as the platform expanded its offerings and solidified its position as the go-to professional networking site, the cost of these premium services has steadily increased.

The perception of access to top-tier companies and industry professionals has been a significant selling point for LinkedIn. Many job seekers are willing to invest in premium memberships, believing it will increase their chances of landing their dream job. However, as prices continue to rise, there’s a growing debate about the actual value these premium services offer.

LinkedIn’s recent layoffs, despite record profits, have brought the platform’s monetization strategies under scrutiny. While the company continues to grow in terms of membership and revenue, its decision to lay off workers raises questions about its future direction and the true value it offers to its users.

The Daily Dot has reached out to u/bogiesforfree via Reddit direct message and LinkedIn via email for comment.

Share this article
*First Published: Oct 18, 2023, 3:48 pm CDT