Revenues and numbers employed at the main Irish arm of jobs and professional networking social media platform LinkedIn are expected to grow this year.
That is according to new accounts which disclose that severance costs of $11.73m for staff who lost their jobs at LinkedIn Ireland UC last year contributed to pre-tax profits at LinkedIn Ireland UC declining by 27% to $311.39m (€265.1m).
The accounts show that LinkedIn Ireland UC recorded the sharp decrease in pre-tax profits as revenues reduced by 26% from $8.93 billion to $6.58 billion (€5.6 billion) in the 12 months to the end of June last.
The revenue and profit figures are skewed as the prior period was for an 18 month period and the directors state that on a pro-rata basis revenues last year increased by $626m - representing an 11% year on year increase.
The accounts disclose that in a post-balance event the company paid out a dividend of $400m and this followed LinkedIn Ireland UC paying out a dividend of $400m last year.
Dublin is central to LinkedIn's global expansion and the Microsoft Corporation company officially opened its new LinkedIn campus in March 2025 at Wilton Park.
The campus is LinkedIn's largest office outside the US and the company has more than 2,000 employees in Ireland, representing 60% of LinkedIn's EMEA workforce.
The directors state that the principal activity of the company is the operation of the world's largest professional network on the Internet with over one billion members in over 200 countries and territories and is available in 36 languages.
A spokesman for LinkedIn Ireland said today: "LinkedIn's growth reflects more members, businesses and advertisers recognising the value of our platform, tools and professional community. Members are turning to LinkedIn in record numbers, for professional community support, job searches, skills development and staying informed."
Numbers employed reduced by 74 from 2,135 to 2,061 and salaries last year totalled $232.24m - which works out to an average salary of $112,686 before share based payments of $23.16m are taken into account.
Staff costs also include the $11.73m in "severance costs".
The directors state that "there was a decrease in the average number of employees of 3%, however the company's activities continued to grow during the year".
In an upbeat outlook, the directors say that "the company's turnover, headcount and administrative expenses are all expected to grow in 2026".
"This future growth is expected with the further development of the product range offered in the EMEA market and further investment in artificial intelligence (AI) across the entire business and infusing generative AI capabilities into consumer and commercial offerings," they say.
The directors state that the investments "we are making in AI infrastructure will continue to increase our operating costs and may decrease our operating margins".
The firm’s pre-tax profits were also hit by $41.1m "recognition at fair value of lease guarantees provided by the company's ultimate parent company on the assignment of its leased offices at One, Two and Three Wilton Park, Dublin".
The firm's profits were boosted by income of $98.48m from group undertakings and $93.49m in net interest receivable.
The firm recorded post tax profits of $258.9m after incurring a $52.47m corporation tax charge.
Pay to directors increased almost three fold from $840,318 to $2.29m with directors’ pay made up of emoluments of $751,860, $1.48m paid under long term incentive schemes and pension contributions of $60,239.
In another post balance sheet event, the directors state that the media regulator in Ireland, Coimisiún na Meán, commenced an investigation intoLinkedIn in relation to the Digital Services Act.
They state that "at the time of approval of the financial statements it is too early to determine the outcome or financial effect of this investigation".
In October 2024, the Irish Data Protection Commission (IDPC) imposed a €310m fine of LinkedIn Ireland UC after examining LinkedIn's processing of personal data for the purposes of behavioural analysis and targeted advertising of users who have created LinkedIn profiles.
A note states that LinkedIn’s ultimate parent, Microsoft, has indemnified the company against all potential/probable fines directed by the IDPC in connection with this matter.
The note states: "Accordingly, there is no financial impact on the company."
The note states that the company has appealed the decision.
Shareholder funds at the end of June last totalled $749.97m.
The Irish based business of LinkedIn manages the company's operations in Europe, the Middle East and Africa (EMEA).
The profit for last year takes account of combined non-cash depreciation, impairment and amortisation costs of $29.09m offset by a foreign exchange gain of $20.4m.
Reporting by Gordon Deegan
