LinkedIn, the professional networking platform owned by Microsoft, has announced a workforce reduction and its gradual exit from the Chinese market. The company currently has around 20,000 employees and plans to cut 716 positions. This move follows the trend of layoffs in the technology industry that began in late 2022 and has already led to the termination of around 190,000 people so far this year, according to Layoffs.fyi. In May, job losses in the technology sector exceeded 4,500.
Ryan Roslansky, CEO of LinkedIn, explained in a letter to employees that the company will expand its links with subcontractors to meet demand in emerging markets. “With the market and customer demand fluctuating more, and to better serve growing and emerging markets, we are expanding the use of vendors,” he wrote. He added that these vendors would be “external partners” who would take on new and existing work. Despite the planned reduction, Roslansky said these changes would create 250 new jobs.
Another measure taken by the professional networking platform is its gradual withdrawal from China. As it had decided in 2021, LinkedIn will proceed with the exit of its application, InCareer, from the Chinese market due to fierce competition and challenges in the environment. “Despite our initial progress, InCareer faced fierce competition and a challenging macroeconomic climate, which ultimately led us to the decision to discontinue the service,” the company clarified.
Friday, May 10, 2024