In a significant shift in business strategy, LinkedIn is set to lay off 716 employees worldwide and discontinue its China-based jobs app, InCareer. This move comes in the wake of observed changes in customer behaviour and a slowdown in revenue growth, and is part of a larger workforce reduction strategy.
CEO Ryan Rolansky communicated this challenging decision in a letter to employees, stating that the company is navigating through a rapidly evolving business landscape. The layoff, affecting various departments including product, engineering, corporate, sales and marketing, particularly in China, is a result of these shifts.
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LinkedIn plans to refocus its global business organisation (GBO) to foster agility and set the stage for future growth. The company aims to streamline its work processes and create an integrated team model to enhance customer support. The technology roadmap will be led by product and engineering teams, while components of the business productivity team will be assimilated into other parts of MCS or teams within GTMOps.
In response to fluctuating market conditions and customer demand, LinkedIn plans to expand its vendor base, trim management layers, and widen role responsibilities, thereby expediting decision-making processes.
In a countermove, LinkedIn also intends to create over 250 new roles, particularly in new business and account management teams from 15 May, aiming at profitable growth opportunities.
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On the China front, the phase-out of the jobs app, InCareer, will commence from 9 August. The company will focus on supporting companies operating in China with hiring, marketing, and training needs abroad. This refocus will see the discontinuation of product and engineering teams in China and a downsizing of corporate, sales, and marketing functions.
This decision echoes a similar move by Microsoft in October 2021 when it shut down its primary social network in China. LinkedIn’s Senior Vice-President, Mohak Shroff, mentioned in his blog about the company’s increasing challenges and compliance requirements in the Chinese operating environment.
This article is based on reports by MARKETING INTERACTIVE.
