LinkedIn, the social media network owned by Microsoft that focuses on business professionals, said on Monday it would cut 716 jobs as demand wavers, while also shutting down its China-focused job application.
LinkedIn, which has 20,000 employees, has grown revenue each
quarter during the last year, but it joins other major technology companies
including its parent in laying off workers amid a weakening global economic
outlook.
In the past six months, more than 270,000 tech jobs globally
have been cut, according to Layoffs.fyi, which has been tracking the fallout.
LinkedIn makes money through ad sales and also by charging
for subscriptions to recruiting and sales professionals who use the network to
find prospects.
In a letter to employees, LinkedIn CEO Ryan Roslansky said
the move to cut roles in its sales, operations and support teams was aimed at
streamlining the company's operations and would remove layers to help make
quicker decisions.
"With the market and customer demand fluctuating more,
and to serve emerging and growth markets more effectively, we are expanding the
use of vendors," Roslansky wrote.
A LinkedIn spokesperson said the vendors were "external
partners" who would take on new and existing work.
Roslansky also said in the letter that the changes would
result in creating 250 new jobs. The spokesperson said that employees affected
by the cuts would be eligible to apply for those roles.
LinkedIn also said it was eliminating the slimmed down jobs
app that it offers in China after it decided in 2021 to mostly withdraw from
the country, citing a "challenging" environment. The remaining China
app, called InCareers, will be phased out by August 9, LinkedIn said.
"Despite our initial progress, InCareer faced fierce
competition and a challenging macroeconomic climate, which ultimately led us to
the decision of discontinuing the service," the company told users of the
website.
LinkedIn will retain a presence in China to help companies
operating there to hire and train employees outside the country, the company
spokesperson said.
In the tech sector, large companies have accounted for the
bulk of recent layoffs, including 27,000 at Amazon, the most in its history.
Facebook owner Meta Platforms shed 21,000, and Google parent
Alphabet has laid off 12,000. Before LinkedIn's announcement, 5,000 technology
jobs had been in eliminated in May alone, according to Layoffs.fyi. Microsoft,
which bought LinkedIn for around $26 billion in 2016, has announced some 10,000
job cuts in recent months and took a $1.2 billion charge related to the
layoffs. © Reuters