The tech industry takes another hit as another big platform announces layoffs.
Despite a year of consistent revenue growth, LinkedIn, which has 20,000 employees, joined other big technology companies, including its parent, in laying off staff due to the deteriorating global economic outlook.
On Monday, the Microsoft-owned professional networking service LinkedIn announced that it would lay off 716 employees and discontinue its China-specific job application in the face of waning demand.
U.S.-based workers who are laid off will be eligible for severance pay, continued health insurance, and assistance finding new employment, while their international counterparts will receive benefits in line with their home countries’ employment standards.
LinkedIn CEO Ryan Roslansky informed staff of the additional 716 layoffs in an email that was made public on Monday’s intranet.
In addition to the layoffs, Roslansky said LinkedIn would discontinue its InCareer app for finding local employment in China by August. Roslansky says the app has “faced fierce competition and a challenging macroeconomic climate.”
LinkedIn is eliminating 716 positions and will stop supporting its local Chinese jobs service.
Competitors like Maimai, the most popular professional networking site in China with over 120 million users, made it difficult for InCareer to fulfill its mission of assisting Chinese professionals in networking, finding, and applying for jobs. The platform’s anonymity makes Maimai a go-to for employees looking to air grievances or learn more about their employers.
LinkedIn is the latest major giant, including Google, Amazon, and smaller companies, to announce staff reductions. Microsoft, the company’s parent, said in January that it would eliminate 10,000 positions or about 5% of its global workforce.
By the 9th of August, LinkedIn hopes to have completed its transition away from InCareer and begun assisting Chinese businesses with overseas recruitment, marketing, and education. This implies its Talent, Marketing, and Learning operations in China will continue.
In his post, Roslansky also claimed that the alterations would lead to the addition of 250 jobs. The spokeswoman assured reporters that people laid off may apply for similar positions elsewhere.