Microsoft-owned LinkedIn, a social media platform geared towards business professionals, announced on Monday that it would eliminate 716 positions due to waning demand and close down its China-specific job application.
Although LinkedIn, which has 20,000 employees, has seen quarterly revenue growth over the past year, it has joined other large technology businesses, including its parent, in cutting staff due to a dimming prognosis for the global economy.
The Statement Of Layoffs.fyi
According to Layoffs.fyi, which has been monitoring the effects, more than 270,000 tech jobs have been eliminated globally in the last six months.
In addition to charging recruiting and sales professionals who use the network to identify prospects a subscription fee, LinkedIn also generates revenue from the sale of advertising space.
In a letter to staff members, LinkedIn CEO Ryan Roslansky explained that the company’s processes will be streamlined by eliminating layers in the sales, operations, and support teams. This would enable quicker decision-making.
We are increasing the usage of suppliers, according to Roslansky, “as the market and customer demand fluctuate more and to better serve emerging and growth markets.”
The suppliers, according to a LinkedIn representative, were “external partners” who would take on both new and existing business.
Additionally, according to Roslansky’s letter, the modifications will lead to the creation of 250 new employees. The representative stated that affected employees would be qualified to apply for such positions.
The Announcement Of LinkedIn
LinkedIn also announced that it was getting rid of the scaled-down jobs app it provides in China after deciding to primarily leave the country in 2021 due to a “challenging” climate. By August 9, InCareers, the last China-specific app, will be discontinued, according to LinkedIn.
The company informed website visitors that, “despite our initial progress, InCareer faced fierce competition and a challenging macroeconomic climate, which ultimately led us to the decision of discontinuing the service.”
According to a company representative, LinkedIn will continue to have a presence in China to support Chinese businesses looking to hire and educate personnel abroad.
The majority of recent layoffs in the tech industry have been made by huge corporations, including 27,000 at Amazon, the highest number in its history.
Credit:google
Meta Platforms, the owner of Facebook, cut 21,000 jobs, and Alphabet, the parent company of Google, cut 12,000 jobs. According to Layoffs, 5,000 technological positions had been lost in May alone prior to LinkedIn’s statement. fyi.
Microsoft, which acquired LinkedIn in 2016 for about $26 billion (approximately Rs. 2,13,100 crore), has recently announced the elimination of 10,000 jobs and incurred a charge of $1.2 billion (about Rs. 9800 crore) as a result.