Chinese authority shuts down media platform LinkedIn App rendering over 700 people jobless
BEIJING, China - The slow revenue growth, changing customer behaviour and unpredictable business environment in China has forced LinkedIn, the social media platform for professional connections to shut down. This new development has resulted in more than 700 job losses.
In a letter addressed to the employees earlier, LinkedIn Chief Executive Ryan Roslansky said the company would shed 716 jobs and scrap its job-hunting app in China in response to slowing revenue growth and changing customer behaviour.
“In an evolving market, we must continuously have the conviction to adapt our strategy in order to make our vision a reality,” Roslansky said.
Roslansky said the changes will include the creation of 250 new roles and integration of some teams, as well as reducing management roles and broadening responsibilities “to make decisions more quickly”.
“As we turn 20, we are entering a new decade for LinkedIn, one that will perhaps be the most consequential we’ve experienced to date,” he said.
“AI is just beginning to accelerate changes in the global economy and labour market, and LinkedIn is more essential than ever to help our members and customers navigate the changes to access economic opportunity.”
The job cuts are the latest layoffs to hit the tech sector in recent months, following the shedding of more than 100,000 employees at Google, Amazon, Meta, Twitter and Microsoft.
In 2021, LinkedIn shut down most of its services in China, citing the growing difficulty of complying with the Chinese government’s regulatory demands.
The company launched the stripped-down job-hunting app called InJobs in the country later that year.
Reuters reported that LinkedIn, whose headquarters are in Sunnyvale, California, will retain a presence in China to help companies hire and train employees.
As the only major Western social media site operating in China, LinkedIn faced criticism for cooperating with Chinese censorship, including blacklisting journalists critical of Beijing.