LinkedIn, a Microsoft-owned social media network aimed at business professionals, announced 716 job cuts on Monday as demand falls.
The company recently announced that it will discontinue its China-focused employment application.
LinkedIn, which has 20,000 employees, has gained revenue in each quarter over the last year, but it is joining other major internet businesses, including its parent, in laying off staff as the global economy slows.
According to Layoffs. fyi, which has been tracking the aftermath, over 270,000 tech jobs have been lost internationally in the last six months.
LinkedIn generates revenue through ad sales as well as subscription fees charged to recruiting and sales professionals who utilise the network to locate prospects.
LinkedIn CEO Ryan Roslansky stated in a letter to workers that the effort to reduce roles in its sales, operations, and support teams was aimed at streamlining the company’s operations and removing layers to help make faster choices.
“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.
According to a LinkedIn spokesman, the suppliers are “external partners” who will take on new and existing tasks.
In the letter, Roslansky also stated that the adjustments will result in the creation of 250 new jobs. Employees affected by the layoffs, according to the spokeswoman, will be able to apply for those positions.
LinkedIn also announced the discontinuation of its simplified jobs app in China after deciding in 2021 to leave the nation entirely, citing a “challenging” climate.
LinkedIn says the remaining China app, InCareers, will be phased off by August 9.
According to a corporate representative, LinkedIn will have a presence in China to assist companies operating there in hiring and training people from outside the nation.