Tech layoffs: Microsoft-owned LinkedIn cuts over 700 jobs, shuts down China app InCareer
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Amid the wavering global economic outlook and a looming recession, LinkedIn has joined the club of companies that have massively cut down jobs in the past six months. In a statement released Monday, the company announced that it would be laying off 716 people from its workforce of over 19,000.
In an email to all LinkedIn employees, CEO Ryan Roslansky said, “Over the years we've had to make hard decisions to ensure we were setting the company up to deliver on our vision, and I'm sharing one of those decisions today. 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.”
The company cited ‘shifts in customer behavior and slower revenue growth’ as the primary reasons for the layoffs. However, the email also mentioned that the company will be hiring for 250 new roles in operations, new business and account management teams starting May 15.
LinkedIn to shut down its China App
LinkedIn also announced that it would be discontinuing InCareer, the company’s local jobs app in China, by August 9 this year due to fierce competition and a challenging macroeconomic climate.
Reuters spoke to LinkedIn’s spokesperson, who said that the company won’t fully pull out of China yet and will help companies operating there to hire and train employees outside the country.
This news comes amid a stream of layoffs, mostly in the tech sector, announced by Meta, Google, Microsoft, Amazon, and Twitter. According to layoffs.fyi, which tracks layoffs, tech companies have cut 191,538 jobs in 2023. As per analysts, the key reason why Meta and small companies are laying off their employees is because of a predicted recession that will strike the U.S. and Europe in 2023. Other reasons include a dip in consumer demand, investor pressure, cost-cutting, and a rapid hike rate. However, the layoffs have not only been restricted to IT companies but also to retail, energy, healthcare, and finance sectors.
According to the International Monetary Fund, the global economic outlook for 2023 is poised to slow down before rebounding next year. They estimate that the global growth will slow from 3.4% in 2022 to 2.9 percent in 2023 then rebound to 3.1 percent in 2024. By historical standards, growth is expected to remain weak as the world grapples to fight against inflation and due to Russia’s war in Ukraine.
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