LinkedIn will end its China local jobs app and cut 716 jobs. LinkedIn CEO Ryan Roslansky wrote today that “fierce competition and a challenging macroeconomic climate” forced the closure of InCareer, a standalone China app.
LinkedIn, owned by Microsoft and with 20,000 employees, plans to add 250 jobs in some areas and new business and accounting management teams on May 15.
LinkedIn is the latest tech company—including Google, Amazon, and startups—to lay off workers. Microsoft, its parent company, cut 10,000 jobs, or nearly 5% of its global workforce, in January.
InCareer was launched in December 2021, two months after LinkedIn shut down its main China service. LinkedIn China closed due to “a significantly more challenging operating environment and greater compliance requirements.”
InCareer was meant to help Chinese professionals network, find, and apply for jobs, but it competed with Maimai, China’s largest professional networking site with over 120 million users, according to its website. Workers venting or seeking company information use Maimai because they can post anonymously.
LinkedIn will phase out InCareer by August 9 and help Chinese companies hire, market, and train abroad. It will maintain China’s talent, marketing, and learning businesses.
U.S.-covered laid-off workers will receive severance pay, continuing health coverage, and career transition services, while foreign workers will receive local labor law benefits.
LinkedIn’s GBO and China strategy changes include layoffs and InCareer’s phaseout. LinkedIn is disbanding its business productivity team. “Serve emerging and growth markets more effectively” by reducing management roles and using more vendors.
Roslansky expects FY2024 to “remain challenging.” “We’re adapting as we have this year and will continue to operate with the ambition we need to deliver on our vision and the pragmatism required to run the business well,” he wrote.
LinkedIn’s revenue rose 8% year-over-year in Microsoft’s April earnings report. Microsoft previously warned that hiring and advertising spending would slow revenue growth to the mid-single digits in the third quarter.