LinkedIn Announces Layoffs and Change in China Strategy

LinkedIn celebrated 20 years in business and revenue that grew 8% over the last year by laying off 716 people and shutting down its local Chinese app, InCareer.

In a blog post, LinkedIn CEO Ryan Roslansky cited a changing business landscape and slower revenue growth, leading to a reduction in roles within the Global Business Organization (GBO) and the company’s China strategy. LinkedIn’s workforce was estimated to be over 21,000 employees as of 2022.

“As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees,” Roslansky wrote.

The restructuring efforts at LinkedIn outlined by Roslansky include reorganizing work processes, increasing agility, and aligning teams for growth. LinkedIn plans to integrate teams with a focus on better customer support. The company’s product and engineering teams will also take the lead in driving the technology roadmap, while the business productivity team will be phased out or integrated into other departments.

In response to shifting consumer behavior, LinkedIn will expand its use of vendors and streamline decision-making processes. Roslansky mentioned the removal of layers, reduction of management roles, and broadening of responsibilities to enable faster decision-making. While headcount will be reduced, LinkedIn plans to create 250 new roles in specific segments of its operations, new business, and account management teams starting from May 15. These additions aim to support profitable growth and capture market share.

LinkedIn will phase out the local Chinese job app, InCareer, by August 9, 2023, citing fierce competition and challenging macroeconomic conditions for its decision. Roslansky emphasized the goal of  company is to manage expenses while investing in strategic growth areas.

The technology sector as a whole has experienced ongoing layoffs due to various factors, such as waning sales or a weak economic outlook. Several companies, including Cognizant, IBM spin-off Kyndryl, Red Hat, Amazon, Meta, Google, and Accenture, have recently announced job cuts. Microsoft confirmed layoffs within its HoloLens, Surface laptop, and Xbox product divisions. GitHub, a Microsoft-owned company, also announced workforce reductions and a transition to remote work to ensure financial stability.

According to data from Layoffs.fyi, an online tracker of job losses in the technology sector, tech companies have laid off more people already this year than all of last year. Approximately 191,538 employees have been laid off by 660 tech companies this year, compared to 164,591 layoffs last year. The layoffs at tech giants have, by some accounts, been a boon to smaller employers and communities far from the coastal tech hubs that have long struggled to hire talent.