LinkedIn is cutting 716 jobs and shutting down its China app due to weakened demand, following similar moves by other tech giants
Layoffs
May 9, 2023
May 9, 2023
On Monday, LinkedIn, the social media network aimed at business professionals, announced that it would cut 716 jobs as demand weakens, and it is closing down its China-focused job application. The parent company of LinkedIn, Microsoft Corp, and other significant tech firms have laid off employees because of the current weakening global economic outlook.
LinkedIn CEO Ryan Roslansky explained that the company is cutting sales, operations, and support roles to streamline operations, remove layers, and help make quicker decisions. The move is also aimed at helping to serve emerging and growth markets more effectively. The downsizing will result in creating 250 new jobs. The spokesperson said that those employees affected by the layoffs would be eligible to apply for those roles.
LinkedIn has also announced that it is ending the slimmed-down jobs application that it provides in China. LinkedIn had mostly withdrawn from the country in 2021 due to a "challenging" environment, and the remaining China app, called InCareers, will be phased out by August 9th. The company said that it would still have a presence in China to help companies operating there to hire and train employees outside the country.
Before the announcement of the job cuts, over 5,000 technology jobs were eliminated in May alone, according to Layoffs.fyi, which has been monitoring the fallout. Large firms such as Facebook owner Meta Platforms Inc and Google parent Alphabet Inc, which laid off 21,000 and 12,000 employees, respectively, are part of the recent layoffs in the tech industry. In addition, Amazon.com Inc laid off 27,000 employees, which is the most significant number in the company's history.
Despite LinkedIn's recent downsizing, the company has seen a growth in revenue every quarter over the last year. LinkedIn makes money through ad sales and charging for subscriptions to recruiting and sales professionals who use the network to find potential clients. In a bid to keep growing despite the layoffs, the company plans to expand the use of external vendors, who will take on new and existing work.
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