LinkedIn sheds 716 jobs and discontinues China app amidst dwindling demand

• ByStartupStory     |    May 9, 2023

Microsoft-owned social media platform LinkedIn has announced plans to cut 716 jobs due to a drop in demand, while also closing its China-focused job application. Despite consistent revenue growth over the last year, the company, which employs 20,000 people, is following the lead of other major technology firms in laying off workers as the global economic outlook weakens.

According to Layoffs.fyi, which has been tracking the fallout, more than 270,000 tech jobs have been cut globally in the last six months alone. LinkedIn, which generates revenue through ad sales and subscriptions to its recruitment and sales services, has announced plans to cut 716 jobs and shut down its China-focused job application due to weakening global economic conditions.

LinkedIn CEO Ryan Roslansky announced in a letter to employees that the company will be cutting jobs in its sales, operations, and support teams in an effort to streamline operations and make quicker decisions. Roslansky explained that “the move was necessary due to fluctuations in market and customer demand, and the company will be expanding its use of vendors to serve emerging and growth markets more effectively”.

According to a LinkedIn spokesperson, the company will rely on “external partners” to take on new and existing work as part of its effort to streamline operations and make quicker decisions. LinkedIn CEO Ryan Roslansky also announced that the restructuring would create 250 new jobs and that affected employees could apply for these roles.

LinkedIn is shutting down its China-focused job application and eliminating the slimmed down jobs app it offers in the country, after deciding in 2021 to mostly withdraw from China, citing a “challenging” environment. LinkedIn CEO Ryan Roslansky said the move to cut roles in its sales, operations, and support teams is aimed at streamlining the company’s operations, removing layers, and creating 250 new jobs. The spokesperson said that “affected employees would be eligible to apply for those roles. The remaining China app, called InCareers, will be phased out by August 9, LinkedIn said”.

According to a spokesperson, despite cutting jobs and shutting down its slimmed down China-focused job application, LinkedIn will maintain a presence in China to assist companies operating there with recruiting and employee training. The layoffs at LinkedIn are part of a larger trend in the technology industry, which has seen major companies such as Amazon, Facebook, and Alphabet shed tens of thousands of jobs in recent months. 

In May alone, before LinkedIn’s announcement, 5,000 technology jobs had been eliminated, according to Layoffs.fyi. Microsoft, which acquired LinkedIn for $26 billion in 2016, has also announced 10,000 job cuts and taken a $1.2 billion charge related to the layoffs.

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