LinkedIn, under the ownership of Microsoft, is the latest tech company to announce employee layoffs to cut costs. The professional networking platform plans to cut 716 jobs across its sales, operations, and support teams as part of a broader effort to streamline processes.
In a letter to employees on May 8th, LinkedIn CEO Ryan Roslansky outlined the company’s plans to remove layers, reduce management positions, and expand employee responsibilities to facilitate faster decision-making. To manage market and customer demand fluctuations, LinkedIn will rely on external vendors and partners to fill gaps.
LinkedIn is implementing cost-cutting measures by reducing staff and restructuring roles to optimize its operations and remain competitive. A significant portion of the 716 job cuts at LinkedIn is linked to the closure of its China-focused job app, InCareer. The move marks a shift in LinkedIn’s approach to the Chinese market.
The InCareer app was launched in 2015, offering a platform for professionals in China to search and apply for job opportunities. However, LinkedIn announced earlier this year that it would discontinue the app due to a challenging operating environment in China, including increased government scrutiny and censorship of online platforms.
Strategic Shift for LinkedIn in China Amid Regulatory Challenges
The closure of InCareer is part of a broader strategic shift for LinkedIn in China as the company seeks to navigate the country’s regulatory landscape. While LinkedIn has been operating in China for over a decade, the platform has faced challenges in complying with local regulations and competing with domestic social networking sites like WeChat and Weibo.
LinkedIn has announced that eligible employees in the US who are impacted by the recent job cuts will receive a range of benefits, including severance pay, continuing healthcare coverage, and career transition services. For non-US employees, compensation will be based on local laws. In addition, the company has initiated an internal mobility process to help affected team members find new roles within the organization.
While LinkedIn has been one of the few major tech companies to maintain a presence in China, it has faced several challenges in its regulatory environment. The platform closed its main app in China in 2021 due to concerns over censorship and compliance. In its place, LinkedIn launched InCareer, a simplified version of its services without social feed or share options. However, the company has now announced that InCareer will be retired on August 9th, and all user data will be deleted. Until then, users can download their account data from the Settings tab.
Impact of InCareer Closure on LinkedIn’s Operations in China
Despite these challenges, LinkedIn’s CEO Ryan Roslansky has stated that the company will continue supporting companies operating in China in hiring, marketing, and training. Consequently, the company will retain some of its talent, marketing, and learning businesses in the country.
The closure of InCareer affects the app and has broader implications for LinkedIn’s operations in China. Discontinuing the service means that the product and engineering teams in China will be scrapped, and there will be downsizing in the corporate, sales, and marketing functions.
The move comes from the challenging operating environment in China, where foreign tech companies are subject to strict regulations and censorship. LinkedIn has been operating in the country for over a decade but has needed help complying with local laws and competing with domestic social networking sites like WeChat and Weibo.
Despite these challenges, LinkedIn remains committed to supporting businesses operating in China in hiring, marketing, and training. The company will retain some of its talent, marketing, and learning businesses.
