Mumbai: LinkedIn, the Microsoft Corp-owned social media network that focuses on business professionals, has plans to exit from China. In line with that, on Monday it announced that it would cut 716 jobs as demand wavers, while also shutting down its China-focused job application. The remaining China app, called InCareers, will be phased out by 9 August, LinkedIn said, as per a media report.
LinkedIn has 20,000 employees and has witnessed a jump in revenue each quarter during the last year. Inspite of that, it joins other major tech companies, including its parent, in laying off workers with the reasoning of a waning global economic stance.
As per Layoffs.fyi In the past six months, more than 270,000 tech jobs globally have been slashed. In the tech sector, large companies have accounted for the bulk of recent layoffs, including 27,000 at Amazon.com Inc, the most in its history.
LinkedIn makes money through ad sales and also by charging for subscriptions to recruiting and sales professionals who use the network to find prospects.
As per media reports, LinkedIn CEO Ryan Roslansky said in a letter to employees, that the move to cut roles in its sales, operations and support teams was aimed at streamlining the company’s operations and would remove layers to help make quicker decisions.
“With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors,” Roslansky wrote.
Roslansky also said in the letter that the changes would result in creating 250 new jobs.
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