Amid a weakening global economic outlook, LinkedIn has joined other major technology companies, including its parent Microsoft, in reducing its workforce. The Microsoft-owned social media network announced on Monday that it would eliminate 716 positions and gradually discontinue its job search application in China, despite having achieved revenue growth each quarter over the past year.
Reuters reported that LinkedIn, which currently has a workforce of 20,000 employees, has now become the latest technology company to implement staff cuts.
CEO Ryan Roslansky sent an email to all employees stating that due to the constantly changing business environment, LinkedIn will be implementing changes to its Global Business Organisation (GBO) and China strategy, which will lead to 716 employees losing their jobs.
“As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organisation (GBO) and our China strategy that will result in a reduction of roles for 716 employees,” he wrote.
According to Roslansky, the decision to reduce positions within sales, operations, and support teams was made in order to simplify the company's operations and eliminate bureaucratic layers that slow down the decision-making process.
In addition, Roslansky mentioned that the restructuring would also involve the creation of 250 new positions within the company. Employees who have been laid off from sales, operations, and support teams will have the opportunity to apply for these positions.
LinkedIn has announced that it will discontinue InCareer, its China-based job search application, by August 9, 2023. Although InCareer achieved some success in the past year due to the company's dedicated team in China, it faced tough competition and a difficult economic climate.
“Though InCareer experienced some success in the past year thanks to our strong China-based team, it also encountered fierce competition and a challenging macroeconomic climate,” Roslansky wrote.
As per a spokesperson from LinkedIn, the company will maintain a presence in China, assisting firms that are operating within the country to recruit and provide training for employees who are based outside of China.
Roslansky has stated that the laid-off employees in the United States will be eligible for various benefits such as severance pay, continued health coverage, and career transition assistance.
However, the benefits offered to employees outside the United States will comply with the employment regulations and local practices in each respective country.