LinkedIn, the professional networking site, announced its plan to cut 716 jobs as it phases out its local jobs app in China, called InCareer. The decision was made due to fierce competition and a challenging macroeconomic climate, according to LinkedIn CEO Ryan Roslanky.
LinkedIn’s restructuring plans
Despite the layoffs and phasing out of InCareer, LinkedIn is set to open approximately 250 new jobs on May 15th in specific segments of its operations, including new business and accounting management teams. The restructuring plans are part of the changes that LinkedIn is making to its Global Business Organization (GBO) and China strategy.
LinkedIn’s failed attempt to compete with Maimai in China
LinkedIn launched InCareer in December 2021 after the shutdown of its main service in China due to a significantly more challenging operating environment and greater compliance requirements. However, the new platform faced tough competition from the dominant professional networking site in China, Maimai, which boasts over 120 million users and allows for the anonymous sharing of posts. Ultimately, InCareer failed to gain a significant foothold in the Chinese market, leading LinkedIn to phase it out by August 9, 2023, as part of its revamped China strategy.
LinkedIn’s new strategy for China focuses on company support services
LinkedIn plans to finish phasing out InCareer by August 9, while shifting its China strategy to help companies operating in China hire, market and train abroad. This means it will continue to have Talent, Marketing, and Learning businesses in China.
LinkedIn’s changes to GBO and China strategy
The layoffs and InCareer’s phasing out are part of changes that LinkedIn is making to its Global Business Organization (GBO) and China strategy. As part of that, LinkedIn is sunsetting its Business Productivity team. It also plans to reduce management roles and use more vendors to serve emerging and growth markets more effectively.
LinkedIn’s revenue increase and expected slowdown
According to Microsoft’s latest quarterly earnings report, issued in April, LinkedIn reported an 8% increase in revenue year-over-year. However, Microsoft warned it expected revenue growth to slow to mid-single digits in the third quarter due to a slowdown in hiring and advertising spending.
Severance packages and benefits for laid-off LinkedIn employees
US employees impacted by the layoffs will get severance pay, health coverage, and career transition services. Those outside the U.S. will receive benefits that comply with local labor laws and practices.
Conclusion
To sum up, NVIDIA has released its A800 GPU, which operates at 70% of the A100’s speed, for the Chinese market. Meanwhile, LinkedIn is phasing out its China app and cutting jobs due to competition and a challenging macroeconomic climate. However, there is hope for the future as the company shifts its strategy towards helping Chinese firms hire, market, and train abroad, potentially leading to new opportunities for growth.