Mumbai (India), 9th May 2023: LinkedIn, a Microsoft Corp-owned social media network aimed at business professionals, announced on Monday that it would reduce 716 jobs as demand falls, as well as shut down its China-focused job application.
LinkedIn, which has 20,000 employees, has gained revenue in each quarter over the last year, but it is joining other major tech companies , including its parent Microsoft, in laying off staff as the global economy slows.
According to Layoffs.fyi, which has been tracking the aftermath, over 270,000 tech jobs have been lost internationally in the last six months.
LinkedIn generates revenue through ad sales as well as subscription fees charged to recruiting and sales professionals who utilise
the network to locate prospects.
LinkedIn CEO Ryan Roslansky stated in a letter to workers that the effort to reduce roles in its sales, operations, and support teams was aimed at streamlining the company’s operations and removing layers that will help in swift action and quicker decisions.
Roslansky wrote, “With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors.”
In the letter, Roslansky also stated that the adjustments will result in the creation of 250 new jobs. According to a LinkedIn spokesman, employees affected by the layoffs will be able to apply for those positions.
Additionally, LinkedIn also announced the discontinuation of its simplified jobs app in China, and the company is ready to leave from the nation entirely, citing a “challenging” climate. LinkedIn says the remaining China app, InCareers, will be phased off by August 9.
The company stated on its website, “Despite our initial progress, InCareer faced fierce competition and a challenging macroeconomic climate, which ultimately led us to the decision of discontinuing the service.”
Large corporations have accounted for the majority of recent layoffs in the technology sector, including 27,000 at Amazon.com Inc, the highest in the company’s history.
Meta Platforms Inc, Facebook’s parent company, laid off 21,000 employees, and Alphabet Inc, Google’s parent company, laid off 12,000 workers.
Microsoft, which paid about $26 billion for LinkedIn in 2016, announced 10,000 job losses in recent months and recorded a $1.2 billion charge as a result of the layoffs.
