LinkedIn to Cut 716 Jobs and Shut its China App Amid ‘Challenging’ Economic Climate

LinkedIn, the world’s largest social media platform for professionals, will cut 716 positions and discontinue its jobs app in mainland China, according to a statement by the California-based company.

The decision was made due to shifts in customer behavior and slower revenue growth, said CEO Ryan Roslansky in a letter to employees.

In the same way, a number of US tech firms have made significant job cuts this year. Meta announced 10,000 layoffs in March on top of mass layoffs announced in 2022.

Amazon also announced in the same month that it would eliminate 9,000 positions, following the 18,000 roles the company announced it was cutting in January.

LinkedIn will phase out InCareer, its app for mainland China, by August 9 as part of the move. Roslansky cited “fierce competition” and “a challenging macroeconomic climate” as the reason for the shutdown.

According to a company spokesperson, LinkedIn will retain some presence in China by providing services for companies operating there to hire and train employees outside the country.

LinkedIn is the last major Western social media app still operating in mainland China, as Twitter, Facebook, and Youtube have been banned in the country for more than a decade. Google left in early 2010.

LinkedIn first entered China in 2014 by launching a localized version of its main app. However, its moves to censor posts in the country, in accordance with Chinese laws, came under criticism.

In March 2021, LinkedIn had to suspend signups in China to ensure it was “in compliance with local law.” A few months later, it replaced that app with InCareer, which was focused solely on job postings, with no social networking features such as sharing or commenting.

By 2021, LinkedIn had more than 50 million members in China, making it the company’s third biggest market after the United States and India.

But it lagged behind local competitors such as Maimai, which was launched in 2013 and dubbed the Chinese version of LinkedIn. In a few years it surpassed LinkedIn to become the most popular professional networking platform in the country, with 110 million verified members. A major feature that powered its success was that it allowed users to post anonymously in a chat forum.
The operating environment in China has also become more challenging. Since Xi Jinping took power in 2012, he has tightened control over what can be said online and launched a series of crackdowns on the internet.

In an October 2021 blog post, LinkedIn wrote, “While we’ve found success in helping Chinese members find jobs and economic opportunity, we have not found that same level of success in the more social aspects of sharing and staying informed. We’re also facing a significantly more challenging operating environment and greater compliance requirements in China.”