CALIFORNIA: Microsoft Corp-owned LinkedIn, a social media platform geared towards business professionals, announced on Monday that it would cut 716 positions due to waning demand, and also close down its China-specific job application.
With 20,000 employees, LinkedIn has seen quarterly revenue growth over the last year, but it has joined other significant technology firms, including its parent Microsoft, in laying off employees due to the dimming prospect of the world economy.
Globally, almost 270,000 IT jobs have been eliminated in the last six months, according to Layoffs.fyi, a website that monitors global layoffs.
LinkedIn makes money through advertisement sales and charging for subscriptions to hiring and sales professionals who use the network to find jobs and other prospects.
LinkedIn CEO Ryan Roslansky explained in a letter to staff that the decision to eliminate positions from the company’s sales, operations, and support teams was made to streamline business processes and reduce layers that might slow down decision-making.
“We are growing the usage of suppliers,” Roslansky added, “as the market and consumer demand fluctuate more, and to service new and growth areas more effectively.
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.
According to Roslansky, “we are expanding the use of vendors as the market and customer demand fluctuate more and to serve emerging and growth markets more effectively.”
A representative for LinkedIn said that the suppliers were “external partners” who would take on both new and ongoing work.
In the letter, Roslansky also stated that the modifications would create 250 additional jobs. According to the spokeswoman, people affected by the layoffs could apply for those positions.
After deciding to primarily leave China in 2021 due to a “challenging” environment, LinkedIn also announced that it was removing its slimmed-down jobs app from the market. By August 9, LinkedIn will phase out the last China-specific app called InCareers.
Explaining the decision to end the service in China, LinkedIn told users of the website: “despite our initial progress, InCareer faced overwhelming competition and a challenging macroeconomic climate in China.”
