The latest addition to the list of tech companies announcing job cuts is LinkedIn, owned by Microsoft. This employment-oriented social media platform revealed on Monday that it will eliminate 716 positions and discontinue its local jobs application in China. Despite quarterly revenue growth last year, LinkedIn with its 20,000 employees, follows its parent company and other significant tech firms in downsizing their workforce due to the weakened global economic outlook. This information comes from Reuters.
LinkedIn generates revenue through advertising sales and subscriptions purchased by recruiters and sales professionals who use the platform to locate potential employees. In a letter to employees, CEO Ryan Roslansky explained that the company’s reducing workforce was intended to simplify its operations and eliminate bureaucratic layers to facilitate faster decision-making.
LinkedIn’s CEO conveyed on May 8th that due to the rapidly evolving landscape, the company will be implementing modifications to its Global Business Organization (GBO) and China strategy. Unfortunately, this will lead to a decrease in the number of positions, resulting in 716 employees losing their jobs.
In addition, the company owned by Microsoft has resolved to discontinue its local job application in China, known as InCareer, by August 9, 2023. Roslansky explained that despite some accomplishments last year, InCareer faced intense competition and difficult macroeconomic conditions.
In regard to those affected by the job cuts, Roslansky expressed his commitment to offering comprehensive support. Eligible employees in the United States will receive an array of benefits, such as severance pay, ongoing healthcare coverage, and career transition services. Benefits for employees located outside the United States will adhere to the employment regulations and customary practices in their respective countries. Additionally, for both the Global Business Organization and China employees, there is an internal mobility system in place to help those impacted to locate a new position if their skills match the requirements.
During the past six months, numerous technology behemoths such as Amazon, Facebook, and Google’s parent company Alphabet have declared layoffs. In fact, since late last year, Meta, the parent company of Facebook, has terminated nearly 21,000 employees.
Microsoft, which acquired LinkedIn for roughly $26 billion in 2016, has declared approximately 10,000 job reductions in the last few months, resulting in layoff-related costs of $1.2 billion.
