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It’s no secret that in this post-pandemic economy, many companies have resorted to job cuts and mass layoffs as a way to save operational costs and stay afloat. Now, LinkedIn has announced a new round of job cuts that will affect 716 employees, as well as the shutdown of its job search app in China called InCareer. Despite the platform’s record levels of engagement, the company cited changes in customer behaviour and slower revenue growth as the main reasons behind the layoffs.
Challenging Conditions in China
The company first launched the InCareer app in China back in 2021 after its main service was unable to operate due to compliance requirements. However, the new app, which helped Chinese professionals to network, find and apply for jobs, faced stiff competition from a Chinese networking app called Maimai because it allowed users to share posts anonymously without fear of the government or censorship laws. As a result, Maimai quickly became the preferred choice among users, and InCareer started falling behind.
“Though InCareer experienced some success in the past year thanks to our strong China-based team, it also encountered fierce competition and a challenging macroeconomic climate,” reads a letter from LinkedIn’s CEO, Ryan Roslansky.
LinkedIn says that the job cuts in InCareer are part of its efforts to change its Global Business Organization (GBO) and China strategy and remain competitive. Additionally, the company plans to significantly reduce management roles and start using more vendors to serve emerging markets.
Benefits to the laid-off employees and looking ahead
LinkedIn has assured that all laid-off employees in the US will receive severance pay, continuing health coverage, and career transition services, while employees outside the U.S. will receive benefits that align with local labour laws and practices. Moreover, the company is planning to open around 250 new jobs in areas, including business and accounting management teams, on May 15.
“We’re adapting as we have done 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,” said Roslansky.
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