Microsoft Profiting from LinkedIn Premium and Popular AI Tools

Microsoft Profiting from LinkedIn Premium and Popular AI Tools

LinkedIn recently disclosed its revenue generated from premium subscriptions for the first time since being acquired by Microsoft. The job-networking platform announced that it earned $1.7 billion from premium subscribers in 2023, with a 25% increase in subscribers, largely driven by the use of AI tools. Dan Shapero, LinkedIn’s COO, stated that over 70% of premium users utilize AI tools for various tasks, including writing posts, comments, and profile recommendations. Early tests indicate that 90% of subscribers have found the AI-powered job experience to be useful.

Microsoft revealed earlier this year that LinkedIn’s revenue had increased by 9% in the last quarter, with sustained growth in membership for more than two years. LinkedIn offers premium plans such as “Premium Career” and “Premium Business” for $29.99 and $59.99 monthly, respectively. Shapero mentioned that more AI features are in development, as Microsoft emphasizes the importance of leveraging AI tools for success in various aspects of business and career development.

Despite the positive revenue report, LinkedIn faced challenges last year, including significant layoffs that affected over 1,400 employees in two rounds of cuts. The October layoffs were particularly controversial, as a list of about 500 names of employees slated for termination was prematurely leaked on an anonymous forum prior to the official announcement. LinkedIn’s HR team had created a distribution list called OctoberUpdate on a third-party system, GroupID, which was then leaked on the forum Blind, causing confusion and frustration among employees.

LinkedIn did not immediately respond to requests for comments regarding the layoffs. As the company continues to navigate challenges and opportunities in the evolving job networking space, it remains committed to developing innovative AI tools to enhance user experience and drive success in career advancement and business growth.

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