The professional network and career development tool, LinkedIn, is laying off 716 workers and terminating its Chinese app, ‘InCareers', amid a ‘weakening global economic outlook' and a ‘drop in demand.'
Sales, operations, and support teams have been impacted the most. However, LinkedIn's CEO, Ryan Roslansky, claims that affected workers will be able to apply for 250 new roles that will be created within the company.
LinkedIn Cuts 716 Workers As Demand Slumps
Despite reporting revenue growth for each quarter of 2022, LinkedIn has decided to dismiss 716 workers as demand for its services slumps and the economic climate grows increasingly hostile.
In an open letter to his employees, CEO Ryan Roslanksy explains the decision to trim down sales, operations, and support teams was part of a broader effort to streamline the company and expand the use of their “external partners”.
“With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors.” – LinkedIn CEO Ryan Roslansky
But while around 3.5% of LinkedIn's 20,000-strong workforce has already been handed the pink slip, Roslansky claims that these changes will result in the creation of 250 new toles, which impacted workers will be able to apply for from May 15.
This announcement took place just a week after LinkedIn celebrated its 20th birthday, and three weeks after the social media giant quietly laid off 91 staffers from its talent acquisition team.
LinkedIn Rolls Back Its Chinese App “InCareers”
Aside from dismissing employees, LinkedIn has also decided to discontinue InCareers, the company's answer to LinkedIn in China.
While the company will retain some presence in the country, including helping China-based companies hire and train international employees, this wind-down marks a pretty major change of tact for the company, that's been operating in the Chinese market since 2014.
LinkedIn's presence in China has never been smooth sailing, with the company rebranding its app in 2021 and removing its social networking function to ensure it was in compliance with local laws.
However, CEO Roslansky cited “fierce competition” and a “challenging macroeconomic climate when explaining his decision to axe the app, with alternatives like Maimai taking up most of the market share.
LinkedIn is the only major Western social media app still to operate in China, with Twitter, Facebook, Google, and Youtube being barred from the country for over a decade.
Big Tech's Layoff Spree Isn't Letting Up
As the industry reels from overhiring efforts that took place throughout the pandemic, while contending with ever-rising inflation rates and fluctuating consumer demands, workers have been bearing the brunt more than ever.
A number of major companies are scaling back company benefits, including Google which has recently waved goodbye to complimentary fitness classes, shuttle busses, and snacks.
What's more, just like in 2022, a wave of layoffs has been taking place within the industry, with Meta confirming 10,000 new layoffs earlier in March and Intel cutting 500 staffers this month.
While many tech leaders remain optimistic about the future of the tech industry, its days of unstoppable growth seem long behind us. Unfortunately, this means it's likely that many more jobs will be sacrificed before the situation shows any signs of improvement.