In a letter to employees on Monday, LinkedIn CEO Ryan Roslansky announced that the company is taking steps to adapt to the “rapidly changing landscape” — a decision that will result in cutting 716 jobs.
Roslansky added that while the company has experienced “record engagement on the platform,” it has also seen “shifts in customer behavior and slower revenue growth.”
The company’s restructuring will focus on efficiency, agility, and aligning teams for profitable growth, the letter said. Additionally, LinkedIn will phase out its local job-searching app in China, InCareer.
LinkedIn first launched a version of its platform in China in 2014, but then shuttered operations in March 2021 due to a “challenging operating environment,” the company wrote in a blog post at the time, per Reuters. A few months later, in October, LinkedIn relaunched operations as InCareer to be “in compliance with local law.”
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InCareer had over 50 million users in China when it relaunched, but it faced steep competition from local competitors such as Maimai — China’s most popular business social media platform — which has nearly 110 million users, CNN reported.
“Though InCareer experienced some success in the past year thanks to our strong China-based team, it also encountered fierce competition and a challenging macroeconomic climate,” Roslansky wrote.
The app will be completely shut down by August 9th, 2023.
Roslansky also added that the company will discontinue product and engineering teams in China, as well as downsize corporate, sales, and marketing functions.
The news of the job cuts comes a week after LinkedIn turned 20, also noted by Roslansky as a chance to reflect and celebrate the company’s growth, but also a time to reevaluate in a changing economic landscape.
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“As we turn 20, we are entering a new decade for LinkedIn, one that will perhaps be the most consequential we’ve experienced to date,” the CEO wrote in parting thoughts. “As we plan for FY24, we’re expecting the macro environment to remain challenging.”
Microsoft, which acquired LinkedIn in 2016, announced 10,000 layoffs in January that would take place over the next few months.
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