Microsoft-owned professional network LinkedIn has become the latest tech company to announce layoffs.
The social media giant will axe 716 jobs as it looks to expand the use of vendors amid fluctuating market and customer demand.
"With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors," Ryan Roslansky, chief executive officer of LinkedIn, wrote in an email to employees.
"We are also removing layers, reducing management roles and broadening responsibilities to make decisions more quickly," he wrote.
The professional network is also shutting down InCareer, its local jobs app in China, by August 9, 2023. "Though InCareer experienced some success in the past year thanks to our strong China-based team, it also encountered fierce competition and a challenging macroeconomic climate," Roslansky said.
The company will convene an all hands meeting with its China-based colleagues in the coming hours to discuss the implications of these changes, including the discontinuation of product and engineering teams in China and the downsizing of corporate, sales, and marketing functions.
"While we're making meaningful progress creating economic opportunities for our members and customers and experiencing record engagement on the platform, we're also seeing shifts in customer behavior and slower revenue growth. In an evolving market, we must continuously have the conviction to adapt our strategy in order to make our vision a reality," said Roslansky.
The LinkedIn CEO said the company will be refocusing its Global Business Organization for the next phase of growth which involves bringing teams together in a more integrated model to better support customers.
"To accelerate our ease of doing business work, our Product & Engineering teams will take the lead for our technology roadmap, and the Business Productivity team will be sunsetted," the LinkedIn boss said.
Amid layoffs, the social media network plans to create 250 new jobs.
"To invest in opportunities for profitable growth and capture share amidst the current cycle, we are ensuring we have the right roles for the work required. This involves both reducing roles, and it also includes opening up more than 250 new roles in specific segments of our operations, new business and account management teams starting on May 15," Roslansky said.
The company will provide support to employees impacted by the layoffs. U.S. benefit-eligible employees will receive a variety of benefits including severance pay, continuing health coverage, and career transition services, it said. Benefits for employees outside the U.S. will align with the employment laws and local practices in each country.
LinkedIn expects the macro environment to remain challenging in FY24. "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. We will continue to manage our expenses as we invest in strategic growth areas, knowing that the foundations we are putting in place now - for innovation, agility and scale - are setting us up for the years ahead," said Roslansky.