UNITED STATES: LinkedIn, the Microsoft-owned social media platform, is set to cut over 700 jobs and shut down its China service, InCareer. The move is a response to slowing revenue growth and changing customer behaviour, according to a letter from CEO Ryan Roslansky to LinkedIn employees on Monday.
LinkedIn will also join other tech giants like Google, Facebook, and Twitter without a platform in China. The company’s China app, InCareer, will be shut down on August 9, 2023. The decision was made due to fierce competition and a challenging macroeconomic climate.
However, LinkedIn will retain a presence in China to help companies operating there hire and train employees outside the country. The company will continue to have Talent, Marketing, and Learning businesses in China.
In his employee letter, Roslansky said that the company would cut 716 jobs. “In an evolving market, we must continuously have the conviction to adapt our strategy in order to make our vision a reality,” he said.
The company will also create 250 new roles and integrate some teams. Other modifications include decreasing managerial roles and widening duties in order to make faster choices.
“As we turn 20, we are entering a new decade for LinkedIn, one that will perhaps be the most consequential we’ve experienced to date,” Roslansky said.
According to a LinkedIn spokesperson, employees affected by the layoffs will be able to apply for the new positions. The company currently employs 20,000 people and has reportedly increased sales in each quarter over the last year.
In recent months, the tech sector has witnessed several large companies embarking on massive layoffs. Amazon.com Inc eliminated 27,000 employees, Facebook owner Meta Platforms Inc cut 21,000, and Alphabet Inc, the parent company of Google, eliminated 12,000 jobs. 5,000 IT jobs were lost in May alone, according to Layoffs.fyi, excluding LinkedIn.
“AI is just beginning to accelerate changes in the global economy and labour market, and LinkedIn is more essential than ever to help our members and customers navigate the changes to access economic opportunity,” Roslansky added.
Despite the layoffs, LinkedIn remains committed to its vision of connecting the world’s professionals to make them more productive and successful. The company sees AI as a crucial tool for achieving this goal, and it will continue to innovate and adapt in response to changing market conditions.
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