Microsoft-owned professional social networking platform, LinkedIn, has laid off 716 employees as part of its strategy to streamline operations, including shutting down its InCareer app in China. Ryan Roslansky, the company's CEO, explained in an email to employees that the move was necessary to adapt to an evolving market and make their vision a reality.
Roslansky wrote, "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."
He further added, "If your role is directly impacted by this decision, you will receive a calendar invitation within the next hour for a meeting with a leader from your team and a representative from our GTO."
He admitted that while the platform is making meaningful progress in creating economic opportunities for its members and customers and experiencing record engagement on the platform, the company is also working toward seeing a shift in customer behaviour and slower revenue growth.
IANS report states that besides the layoff, LinkedIn has experienced a record engagement in the first quarter (March) witnessing over 930 million members across the world, who are using the platform to connect, sell, learn and get hired at organisations. Also, the company's revenue has reportedly grown by 8%, contributing to the tech giant's overall performance.
In 2016, Microsoft acquired LinkedIn for over $26 billion. Also, the report of IANS has stated that LinkedIn is set to discontinue the product and engineering teams in China and it will be downsizing the corporate, sales, and marketing functions, as a part of the restructuring.
Regarding the China market, Roslansky stated that the strategy of the company would shift to assisting companies' operations in China with hiring, marketing, and training abroad. Besides that, the company's decision to exit the Chinese market is expected to impact revenue growth in the short term.
"As we plan for FY24, we're expecting the macro environment to remain challenging. We're adapting as we have done this year and will continue to operate with the ambition we need to deliver on our vision and the pragmatism required to run the business well," said the CEO.
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Inputs from IANS
