LinkedIn is a mandatory business social network owned by Microsoft. In a message to employees, LinkedIn announced that it will discontinue its job-specific app in China, InCareer Lay off 716 employees worldwide he does.
The move, announced Monday, will affect about 3.5 percent of LinkedIn’s 19,000 employees worldwide. LinkedIn launched InCareer in China in December 2021.
The reason for firing 716 LinkedIn employees
“Although InCareer experienced success last year thanks to our strong China-based team, it faced intense competition and a challenging macroeconomic environment,” LinkedIn CEO Ryan Ruslansky said in the message. Meanwhile, LinkedIn’s parent company, Microsoft, also fired about 10,000 of its employees last year. This company did not even have mercy on the employees of the ethics team in the development of its artificial intelligence and fired all of them to achieve higher speed.
Shares of Microsoft’s parent company were largely flat in premarket trading on Tuesday. According to Microsoft’s earnings report and quarterly SEC report, LinkedIn’s revenue in the third quarter of 2023 grew 8% year-over-year to $3.7 billion.
According to LinkedIn’s help page, InCareer will delete all user data by August 9. LinkedIn will continue to operate its learning, marketing and talent businesses in China. But Ruslansky indicated that the company will continue to manage costs next year, suggesting that cost cuts or further layoffs may be options on the table.
China is a fertile market for US-based tech companies, which often struggle with domestic rivals for market share. According to the InCareer page, the total number of users of the job application and LinkedIn in China was more than 57 million. In comparison, its domestic rival, Zhaopin, claimed to have more than 320 million professional and corporate users of Baidu.
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