Due to intense competition and a challenging macroeconomic climate, LinkedIn will cut 716 jobs and discontinue its local jobs app in China, according to a letter from CEO Ryan Roslanky.
“With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors,” he said. “We are also removing layers, reducing management roles and broadening responsibilities to make decisions more quickly.” said Ryan Roslanky.
LinkedIn fired the employees
According to a LinkedIn representative, these vendors are “external partners” who will take on new and existing work.
Roslansky stated that the product and engineering teams would be in charge of the company’s technology roadmap, while the business productivity team would be phased out and partially integrated into other parts of the business.
Despite the reduction of some roles, LinkedIn plans to add approximately 250 new positions in some areas of its operations, including new business and accounting management teams, on May 15.
Microsoft, LinekedIn’s parent company, announced plans in January to cut 10,000 jobs from its global workforce, accounting for approximately 5% of its total workforce.
InCareer, LinkedIn’s local jobs application in China, was launched in December 2021, just months after the company announced the closure of its main service in the country.
It was initially intended to facilitate professional networking, job searching, and applications within China.
However, it faced stiff competition from the dominant professional networking site Maimai, which boasts over 120 million users according to its website.
Maimai provides benefits such as the ability to share posts anonymously, making it a popular platform for individuals seeking to express their opinions or gather information about their employers. LinkedIn has stated that the phase-out of InCareer will be completed by August 9.
Instead, the company’s China strategy will shift to assisting companies operating within China with their international hiring, marketing, and training needs.
As a result, LinkedIn will continue to operate its Talent, Marketing, and Learning businesses in China.
Employees in the United States who are eligible for U.S. benefits will receive severance pay, continued health coverage, and assistance with career transition services.
Employees outside the United States, meanwhile, will receive benefits in accordance with local labor laws and practices.
According to Layoffs.fyi, which has been tracking the fallout, over 270,000 tech jobs have been cut globally in the last six months.
Microsoft, LinkedIn’s parent company, has cut 10,000 jobs, while Meta, Facebook’s parent company, has cut 21,000 jobs. Google has laid off 12,000 employees, while Amazon has laid off 27,000 workers.
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