Following the footsteps of tech giants like Amazon, Google and Meta, Microsoft-owned social media platform LinkedIn is slashing over 700 jobs citing "slowing revenue growth and changing customer behaviour."
The company will also do away with its services in China. The company's China app, called InCareer, will shut down on August 9, 2023. Following the move, LinkedIn will join the bandwagon of countries like Google, Facebook and Twitter without a platform in China.
In a letter to employees on Monday, LinkedIn Chief Executive Ryan Roslansky said 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,” Roslansky said.
However, Roslansky said 250 new roles will be created and some teams integrated. Other changes include reducing management roles and broadening responsibilities to make decisions more quickly. "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," he said.
"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.
According to LinkedIn spokesperson, the employees affected by the cuts would be eligible to apply for the new roles. LinkedIn has 20,000 employees and has reportedly grown revenue each quarter during the last year.
On shutting down InCareer, Roslanky said the decision was taken due to "fierce competition and a challenging macroeconomic climate."
InCareer was launched in 2021 to help professionals within China network, find and apply for jobs, but faced stiff challenge from Maimai, the networking giant with over 120 million users.
However, the company ill retain a presence in China to help companies operating there to hire and train employees outside the country, LinkedIn spokesperson said. This means it will continue to have Talent, Marketing and Learning businesses in China.
In last few months, the tech sector witnessed large companies embarking on massive layoffs. While Amazon.com Inc cut 27.000 jobs, Facebook owner Meta Platforms Inc shed 21,000, and Google parent Alphabet Inc has laid off 12,000.
According to Layoffs.fyi., 5,000 technology jobs had been in eliminated in May alone, excluding LinkedIn.
