LinkedIn will end its China local jobs app and slash 716 positions. LinkedIn CEO Ryan Roslanky wrote today that “fierce competition and a challenging macroeconomic climate” led to the closure of InCareer, a separate China app.
LinkedIn, owned by Microsoft and with 20,000 workers, aims to add 250 jobs in various areas and new business and accounting management teams on May 15.
LinkedIn is the latest digital company to lay off workers, including Google, Amazon, and startups. Microsoft, its parent firm, eliminated 10,000 positions, roughly 5% of its global workforce, in January.
InCareer was established in December 2021, two months after LinkedIn shut down its primary China service. LinkedIn China closed due to “a significantly more challenging operating environment and greater compliance requirements.”
InCareer was supposed to assist Chinese professionals network, searching, and applying for employment. Still, according to its website, it competed with Maimai, China’s largest professional networking site, with over 120 million members. In addition, workers venting or seeking company information use Maimai since they may post anonymously.
LinkedIn will phase down InCareer by August 9 and assist Chinese firms in employing, promoting, and training internationally. It will maintain China’s Talent, Marketing, and Learning companies.
U.S.-covered laid-off workers will get severance compensation, continuous health coverage, and career transition services, while foreign workers will receive local labor law benefits.
LinkedIn’s GBO and China strategic revisions include layoffs and InCareer’s phaseout. In addition, LinkedIn is disbanding its Business Productivity unit. “Serve emerging and growth markets more effectively” by reducing management roles and using more vendors.
Roslansky predicts FY2024 to “remain challenging.” “We’re adapting as we have this year and will continue to operate with the ambition we need to deliver on our vision and the pragmatism required to run the business well,” he wrote.
LinkedIn’s revenue rose 8% year-over-year in Microsoft’s April earnings release. However, Microsoft has warned that recruiting and advertising expenditures will reduce revenue growth to the mid-single digits in the third quarter.