CEM REPORT, ICT | LinkedIn has announced a planned shutdown of its jobs app in mainland China and cut 716 jobs.
The California-based company cited “fierce competition” and “a challenging macroeconomic climate” as the reason for the shutdown.
The decision was communicated in a letter to employees on Monday signed by CEO Ryan Roslansky.
“As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization and our China strategy that will result in a reduction of roles for 716 employees.
“As we plan for [the fiscal year of 2024], we’re expecting the macro environment to remain challenging. We will continue to manage our expenses as we invest in strategic growth areas.”
LinkedIn, however, said it will retain some presence in China, including 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. Twitter, Facebook and Youtube have been banned in the country for more than a decade. Google left in early 2010.
LinkedIn, owned by Microsoft (MSFT), has joined a slew of US tech companies that have made significant job cuts this year. Meta announced in March an additional 10,000 layoffs on top of mass layoffs announced in 2022. Amazon also said during the same month it would eliminate 9,000 positions, on the heels of the 18,000 roles the company announced it was cutting in January.