Microsoft-owned social media network for business professionals LinkedIn announced that it would cut 716 jobs as part of the changes in the company's operations. This would also result in phasing out its local jobs app in China.
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MOUNTAIN VIEW, CA - FEBRUARY 11: A sign is posted in front of the LinkedIn headquarters on February 11, 2011 in Mountain View, California. Online business networking site LinkedIn filed paperwork with the Securities and Exchange Commission in January for an initial public offering later this year.
Announcing Job Cuts
In a letter sent to its employees, LinkedIn announced that it would be cutting jobs, affecting 716 employees in the company as part of its broader changes in its operations. Reuters reported that it would cut roles in its teams from sales, operations, and support, aiming to streamline its whole company.
LinkedIn Chief Executive Officer Ryan Roslansky noted that the company is expanding the use of vendors as the market and customer demand fluctuate day by day. Through this process, it will serve emerging and growth markets more effectively.
He added, "We are also removing layers, reducing management roles, and broadening responsibilities to make decisions more quickly." However, the changes would result in the creation of a new set of jobs, and affected employees will be eligible to apply for those roles. LinkedIn will open 250 roles in the upcoming months.
Shutting Down InCareers
As a result of this, LinkedIn also announced that it will eliminate the slimmed-down jobs application that it offers in China after the company decided to withdraw from the country in 2021. The company cited a "challenging environment", hence why InCareers will be phased out by August 9th this year.
InCareers stated on its website that it faced fierce competition and a challenging macroeconomic climate, leading the company to the decision of discontinuing the service despite its initial progress in the country. The platform entered the Chinese market when Microsoft shut down LinkedIn in China after seven years of service.
Also Read: LinkedIn is Moving Outside the US, Putting More Focus on India
Aside from the challenging operating environment and greater compliance requirements, LinkedIn stated in 2021, "While we've found success in helping Chinese members find jobs and economic opportunity, we have not found that same level of success in the more social aspects of sharing and staying informed."
Previous Layoffs
LinkedIn was recently affected by Microsoft's announced layoffs in February. Chief Executive Officer Satya Nadella informed its staff that less than 5% of the company's worldwide workforce will be affected by this, which resulted in laying off 10,000 employees. The company wrote down $1.2 billion in severance charges from its earnings report.
While Nadella did not confirm which departments were affected by the layoffs, HRDrive reported that LinkedIn is one of Microsfot's areas to be hit by layoffs earlier this year, along with GitHub, cloud-computing arm Azure Gusto, Zoom, and Salesforce.
Last year, Microsoft also inducted many layoffs but did not disclose how many employees were affected. During its first cycle in July 2022, Microsoft stated that it hit fewer than 1% of its 200-thousand-employee workforce.
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