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LinkedIn Adjusts China Strategy: Cuts Jobs and Phases Out InCareer App Amid Competition
May 8, 2023


LinkedIn, the Microsoft-owned professional networking platform, has announced that it will be cutting 716 jobs and phasing out its local jobs app, InCareer, in China. The decision comes in the wake of "fierce competition and a challenging macroeconomic climate," according to a letter from LinkedIn CEO Ryan Roslansky.

Despite the reduction in workforce, LinkedIn has plans to open approximately 250 new jobs across various segments of its operations. The company will also establish new business and accounting management teams on May 15. This strategic move is a response to the evolving business landscape, as LinkedIn is not the only tech giant to announce layoffs. Earlier this year, Microsoft, LinkedIn's parent company, announced that it would be cutting 10,000 jobs or nearly 5% of its global workforce.

InCareer was initially launched in December 2021, following LinkedIn's decision to shut down its main service in China. The closure of LinkedIn China was attributed to "a significantly more challenging operating environment and greater compliance requirements." InCareer was developed as a localized solution for professionals in China to network, find, and apply for jobs. However, the platform faced stiff competition from dominant local players such as Maimai, which boasts over 120 million users and allows anonymous post sharing.

LinkedIn has set a deadline of August 9 to complete the phase-out of InCareer. The company will now shift its China strategy to focus on assisting businesses operating in China with hiring, marketing, and training abroad. As a result, LinkedIn will maintain its Talent, Marketing, and Learning businesses in the country.

Employees affected by the layoffs will receive support in the form of severance pay, continued health coverage, and career transition services for those covered by U.S. benefits. Employees outside the U.S. will receive benefits that align with local labor laws and practices.

These changes are part of LinkedIn's ongoing efforts to adjust its Global Business Organization (GBO) and China strategy. As part of this process, LinkedIn is sunsetting its Business Productivity team and plans to reduce management roles. The company will also leverage more vendors to "serve emerging and growth markets more effectively."

In his letter, Roslansky acknowledged the challenges ahead, stating that he expects fiscal year 2024 to "remain challenging." He emphasized that the company would adapt and continue to operate with ambition and pragmatism to deliver on its vision while maintaining sound business practices.

LinkedIn reported an 8% increase in revenue year-over-year as part of Microsoft's latest quarterly earnings report in April. However, in the previous report, Microsoft warned that it expected revenue growth to slow to the mid-single digits in the third quarter due to a slowdown in hiring and advertising spending.

As LinkedIn adjusts its China strategy and adapts to changing market conditions, it remains committed to supporting businesses and professionals across the globe in the face of an uncertain economic landscape.
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