I keep seeing posts that #LinkedIn and #Indeed type of companies are #recession proof. While companies like #Salesforce and other #CRMs are not. I don't understand how that is possible. From what i know, linkedin does not make money by people browsing linked in. Sure that traffic may increase. But They make money from #recruiters who use it to hire potential #candidates. When recession hits and hiring freeze hits, wont that directly impact all the "recruiter" platforms like LI/ZIP/INDEED ? Companies like #salesforce on the other hand have multi year contracts and their software is vital for many companies to function. Even in a recession people will still use their products to keep the company running. Why is it then that Salesforce and CRMs have placed hiring freezes while LI/ZIP/Indeed are still hiring like crazy.?
Recruiters, sadly, are the some of the first roles to be cut in a recession.
LinkedIn also has ads product that used to be shit, but now it’s much better. They do make money on traffic to their property.
but i think its like 20-30% of overall spend. Plus advertising revenue takes a hit too
Not really, if people are using it to find jobs.
You’re right, linkedin revenue is (already) affected in a bad market. However, Linkedin is seen as a growth company under Microsoft (growing at almost 40% y/y in Q1), and daddy has a lot of cash to keep investing in his growth companies through a downturn. The hope is that we’ll have a bigger business once the market corrects back . Not sure how indeed does it.
Well daddy’s pockets are deep but if it’s as bad 2008 then no one can save everyone unfortunately. All we can do is create value and hope for the best. Also leetcode if economy gets any worse.
Is LinkedIn working on curbing virtue signaling self bragging posts? It’s a fucking cancer!
My uneducated opinion is maybe it is about exponential growth? New projects/innovations? Companies that rely on new products and innovation too much will have projects that didn’t even start bringing revenue. So, during a recession those projects, sometimes even complete businesses might be cut, and when the economy booms will hire more to get ahead, invent new technologies, etc. On the other hand, businesses like Linkedin might not need too much innovation. They have a basic growth ground, and never grow too much so don’t need to shrink. I have no resource or data.
I think leetcode is a competition to linkedin during recession
Is leetcode a good company to join right now?
Companies still have to pay for the Recruiter seats even if they aren’t being used. They can’t drop off unused seats until the end of their contract term
The only true “recession proof” industries are those that you would spend your last dollar on. Think essential food, clothes and services like a plumber.
and NFTs
From personal experience recently: Salesforce rejected all applications, while LinkedIn and indeed reached out with job opportunities. So imo there is no full hire freeze like before, but depends on department and goes more into sub org. Some orgs hire more, others hire less
+1 to this exact experience
LinkedIn also bought Lynda and improved the product. People upskill, career change etc during downturns so that business picks up when hiring slows down.
That business is a tiny fraction of overall. And it goes down during a downturn— people tend to upskill when they are confident that they can access better opportunities. That’s not the case in a downturn
AMA
Yesterday
1258
PM Manager, early 40s, married and ENM (Ethical Non Monogamous) AMA
World Conflicts
10h
405
Is "From the River to the Sea" So Wrong?
Health & Wellness
Yesterday
972
Lasik cost
World Conflicts
9h
353
Why I Find Free Palestine Inspiring
India
13h
555
'Hindutva': The Radical Hindu Ideology That Seeks to 'Push Christianity Out of India’
Yeah… companies laying people off are definitely not spending on LinkedIn