Sections of this topic
In this article, we’ll look at the reasons behind LinkedIn’s recent decision to cut 700 jobs and close its local jobs app in China, amidst a wave of tech layoffs and a changing global economy.
Key Takeaways:
- LinkedIn cuts 716 jobs out of 20,000 workforce and phases out its local jobs app in China.
- The company aims to streamline operations and better serve emerging and growth markets.
- A challenging environment in China led to the decision to phase out the InCareers app.
- Over 270,000 tech jobs have been cut globally in the past six months, with major tech companies including Amazon, Microsoft, and Alphabet announcing layoffs.
- LinkedIn will still maintain a presence in China to support companies hiring and training employees outside the country.
Streamlining Operations to Serve Emerging Markets
LinkedIn, the social media network aimed at business professionals, has recently announced the removal of 716 positions from its workforce of 20,000 employees.
This move is part of the company’s strategy to streamline its operations and better serve emerging and growth markets worldwide.
In a letter from LinkedIn’s Chief Executive, Ryan Roslansky, he stated that fluctuating market and customer demands prompted the decision.
By expanding the use of vendors, the company hopes to increase its effectiveness in these markets.
Additionally, Roslansky mentioned that the changes would result in the creation of 250 new jobs.
Employees affected by the workforce reduction in sales, operations, and support teams will be eligible to apply for these new positions.
LinkedIn’s Challenging Environment in China
One of the major decisions taken by LinkedIn is the phasing out of its local jobs app in China, called InCareers.
This app, which solely serves the Chinese market, will be discontinued by August 9th.
The professional networking giant initially decided to mostly withdraw from China in 2021, citing a “challenging environment.”
Despite LinkedIn’s efforts, InCareers faced fierce competition and an increasingly difficult macroeconomic climate in the country, which ultimately led to the app’s discontinuation.
It’s worth noting that LinkedIn has been the only significant Western social media platform operating in China.
In 2014, when the company started operating in China, it agreed to follow the rules set by the Chinese government.
However, US Senator Rick Scott criticized this decision, calling it a “terrible surrender” to the Communist Chinese government.
The Larger Context: Tech Layoffs on the Rise
LinkedIn is not alone in announcing layoffs. Over the past six months, more than 270,000 tech jobs have been eliminated globally, according to Layoffs.fyi, a platform that tracks job losses in the industry.
Major technology companies such as Amazon, Microsoft (LinkedIn’s parent company), and Alphabet have all disclosed workforce reductions.
In the tech sector, large firms account for the majority of recent job cuts, with Amazon eliminating 27,000 positions – the most in its history.
Meta Platforms Inc., formerly known as Facebook, has reduced its workforce by 21,000 employees, and Google’s parent company, Alphabet Inc., has laid off 12,000 workers.
In May alone, 5,000 technology jobs were eliminated, as reported by Layoffs.fyi.
Microsoft, which acquired LinkedIn for approximately $26 billion in 2016, has announced around 10,000 job cuts in recent months and has taken a $1.2 billion charge related to the layoffs.
LinkedIn’s Continued Presence in China
Despite phasing out its InCareers app and facing a challenging environment in China, LinkedIn will maintain a presence in the country.
The company will continue to support businesses operating in China by helping them hire and train employees outside the nation.
This approach demonstrates LinkedIn’s commitment to providing value to its customers and maintaining a competitive edge, even as the company adjusts its workforce and withdraws from the Chinese market.
Conclusion
LinkedIn’s recent workforce reduction and departure from the Chinese market showcase the company’s adaptability in the face of a shifting global economic landscape.
By streamlining its operations and focusing on emerging and growth markets, LinkedIn aims to better serve its customers and maintain a competitive advantage in an increasingly uncertain environment.
As tech layoffs continue to rise, LinkedIn’s proactive approach to addressing market fluctuations and its ongoing commitment to supporting businesses both inside and outside of China offer valuable insights into how the company plans to navigate these challenges and remain relevant in the ever-evolving world of professional networking.
