LinkedIn Joins Tech Layoffs with 716 Job Cuts, Shut Down China App

LinkedIn, a business professionals-focused social media network owned by Microsoft Corp., announced on Monday that it would layoffs 716 jobs due to decreasing demand and close its China-specific job application,InCareer.

The Microsoft-owned social media platform revealed on Monday that it would eliminate its local jobs app in China and cut 716 positions.

The move by the Microsoft-owned business coincides with a weakening prognosis for the world economy and a decline in demand. Even though LinkedIn’s income has increased every quarter for the past year, it has joined several other significant technology firms in laying off staff, including its parent company, Microsoft. Around 20,000 people work at LinkedIn, thus there have been 3.5% fewer jobs created.

Ryan Roslansky, the CEO, stated in an internal email: As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees.”

LinkedIn also announced that it was getting rid of the scaled-down jobs app it provides in China after deciding to primarily leave the country in 2021 due to a “challenging” climate. By August 9, LinkedIn announced it will phase down the final China app, InCareers.

According to a company representative, LinkedIn will continue to have a presence in China to support Chinese businesses looking to hire and educate personnel abroad.

With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors,” Roslansky stated.

Additionally, as stated in Roslansky’s letter, the changes will result in the hiring of 250 new personnel. According to a LinkedIn spokesman, affected employees would be qualified to apply for such opportunities.

Around 10,000 Microsoft workers were let go earlier this year. Early in 2023, supply chain and artificial intelligence (AI) personnel were laid off.

The majority of recent layoffs in the tech sector have been made by huge corporations, including 27,000 at Amazon.com Inc., the largest ever.

Meta Platforms Inc, the owner of Facebook, cut 21,000 jobs, and Alphabet Inc, the owner of Google, cut 12,000 jobs. According to Layoffs.FYI, 5,000 technical jobs had already been cut before LinkedIn’s statement.

Layoffs can result in immediate cost savings and efficiency improvements, but they can also have a detrimental impact on staff morale, workplace culture, and reputation. Employers must be cautious while handling layoffs and think about how their choices may affect the company’s operations in the long run.