Microsoft-owned professional networking platform LinkedIn has announced that it will cut 716 jobs, primarily in its sales, operations, and support teams, due to fluctuating customer demand in a weakened global economic outlook. The company aims to streamline operations, remove layers, and create 250 new roles as part of this move.

In addition, LinkedIn has also decided to shut down InCareers, its job application service focused on China, after deciding to mostly withdraw from the country earlier this year due to the “challenging” environment. The remaining China app, called InCareers, will be phased out by August 9.

LinkedIn’s Revenue Growth and Business Model

LinkedIn has shown growth in revenue each quarter during the last year. The company makes money through ad sales and subscriptions for recruiting and sales professionals who use the platform to find prospects. According to a LinkedIn spokesperson, the company will retain a presence in China to help companies hire and train employees outside the country.

Large-scale Layoffs in the Tech Sector

In the past six months, more than 270,000 tech jobs have been cut globally, according to Layoffs.fyi, which has been tracking the fallout. In the tech sector, large companies like Amazon, Facebook, Google’s parent Alphabet, and Microsoft have accounted for the bulk of recent layoffs. Amazon has laid off 27,000 employees, Facebook owner Meta Platforms shed 21,000 jobs, and Alphabet has laid off 12,000. Microsoft has announced about 10,000 job cuts in recent months and took a $1.2 billion charge related to the layoffs.

Impact of LinkedIn’s Decision

LinkedIn has seen a rise in usage during the pandemic as remote work became the new norm. However, the company’s move to shut down InCareers and reduce its workforce may have consequences for its users in China and other markets. It may also impact its customer base, particularly sales and recruitment professionals, as they may find fewer opportunities to connect with potential prospects.

Conclusion

LinkedIn’s decision to cut jobs and shut down InCareers is part of its efforts to streamline its operations and reduce costs in response to the changing market and customer demands. While the move may help the company adapt to the evolving economic climate, it may also have an impact on its users and employees in China and other markets.