According to a letter from CEO Ryan Roslanky, LinkedIn will cut 716 jobs and discontinue its local jobs app in China due to intense competition and a challenging macroeconomic climate.
However, LinkedIn plans to add approximately 250 new positions in some areas of its operations, including new business and accounting management teams on May 15, despite the reduction of some roles.
In January, LinekedIn’s parent company Microsoft revealed plans to reduce its global workforce by 10,000 jobs, which accounts for approximately 5% of its total employees.
InCareer, LinkedIn’s local jobs application in China, was launched in December 2021, a few months after the company had announced the closure of its main service in the country. It was initially designed to facilitate networking, job searching, and applications for professionals within China.
However, it faced tough competition from the dominant professional networking site Maimai, which boasts over 120 million users according to its website. Maimai offers advantages such as the ability to share posts anonymously, making it a popular platform for individuals seeking to express their opinions or gather information about their employers.
LinkedIn has outlined plans to complete the phase-out of InCareer by August 9. Instead, the company will shift its China strategy to focus on assisting companies operating within China with their hiring, marketing, and training needs on an international scale.
Consequently, LinkedIn will maintain its Talent, Marketing, and Learning businesses in China.
Affected employees in the United States who are covered by U.S. benefits will receive severance pay, ongoing health coverage, and support for career transition services. Meanwhile, employees located outside the United States will receive benefits that comply with local labor laws and practices.
