LinkedIn, a Microsoft-owned social network aimed at business professionals, said on Monday, May 8, that it would lay off 716 employees and discontinue its China-focused job application due to waning demand.
LinkedIn monetizes itself via a combination of advertising revenue and paid memberships from sales and recruitment professionals.
Current Round of Layoff
This year, LinkedIn will lay off staff along with other large technology businesses, including its parent, as a result of the deteriorating global economic outlook.
In a report by Layoffs.fyi, more than 270,000 tech jobs throughout the world have been eliminated in the previous six months.
The New York Times reported that LinkedIn CEO Ryan Roslansky explained the layoffs in a letter to staff members, citing slowing revenue growth and shifts in consumer preferences. He said that the company's recent decision to eliminate positions in the sales, operations, and support departments was made to streamline the company's operations and to reduce layers so that decisions could be made more quickly.
Roslansky said that the company was increasing its use of suppliers because "the market and customer demand are fluctuating more" and that doing so would help it better serve to develop and grow markets.
In his letter, Roslansky also said that the adjustments would lead to the addition of 250 jobs. A LinkedIn representative added that people laid off might apply for the open positions.
Initiative to Leave China
Following its decision to mostly exit from China in 2021, citing a "challenging" climate, LinkedIn also said it would be discontinuing the streamlined jobs app it provides in the nation. And now, according to a Reuters report, LinkedIn stated that the only surviving China app, InCareers, will be discontinued on August 9.
"Despite our initial progress, InCareer faced fierce competition and a challenging macroeconomic climate, which ultimately led us to the decision to discontinue the service," the company informed the users.
The LinkedIn representative confirmed that the company would maintain an office in China to continue assisting Chinese businesses with the international recruitment and development of their staff.
Layoffs in Tech Sector
Most recent layoffs in the tech industry have been at major corporations, with Amazon being the largest of its kind in the company's history, with 27,000 employees affected.
Facebook's parent company, Meta, has cut off 21,000 employees, while Alphabet has laid off 12,000.
According to Layoffs.fyi, 5,000 tech positions had already been terminated in May before LinkedIn's statement.
Microsoft, which paid almost $26 billion for LinkedIn in 2016, has announced 10,000 layoffs and written down $1.2 billion due to the layoffs over the last several months.