• The layoffs will result in the creation of 250 new jobs
  • The tech giant will phase out InCareer, its app for China, by Aug. 9
  • LinkedIn first began China operations in 2014 with a local version of its main app

LinkedIn has announced to cut 716 roles out of its global workforce of 20,000 employees, the latest in a series of layoffs affecting the global tech industry.

The world's largest social media platform for professionals also plans on shutting down its jobs app in mainland China.

Ryan Roslansky, CEO of Microsoft-owned LinkedIn, issued a letter to the employees Monday, saying the decision came in view of shifts in customer behavior and declining revenue growth, according to CNN.

"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," Roslansky wrote in the letter posted on the company website. "In an evolving market, we must continuously have the conviction to adapt our strategy in order to make our vision a reality."

The layoffs will also result in the creation of 250 new jobs in specific segments of operations, new business and account management teams starting May 15, the letter added. Roslansky noted employees impacted by the job cuts would be eligible to apply for the open positions.

"We are also removing layers, reducing management roles and broadening responsibilities to make decisions more quickly," the letter added. "With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors."

Furthermore, the California-based company will phase out InCareer, its app for mainland China, by Aug. 9, as part of these changes.

Roslansky cited "fierce competition" and "a challenging macroeconomic climate" as the reason behind the closure of the China app. However, the company will continue to maintain some presence in China, including providing employee hiring and training services to companies based in the mainland.

"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 in the letter.

U.S.-based employees affected by the layoffs would be offered severance pay, continuing health coverage and career transition services, and those outside the country will get the stimulus depending on their countries' provisions.

LinkedIn is reportedly the last major U.S.-based social media giant still operating in China, after leading platforms like Twitter, Facebook and YouTube were banned by Beijing over a decade ago. Google also left the Mainland in early 2010.

LinkedIn first began operations in China in 2014 with a local version of its main app. The company was then forced to suspend its signups in China in March 2021 to ensure "compliance with local law." A few months later, the local app was replaced with InCareer with the main focus on job postings.

Microsoft bought LinkedIn for $26.2 billion in 2016, making it the Satya Nadella-led tech giant's biggest ever purchase.

Meanwhile, more than 270,000 tech jobs have been reduced by different tech companies in the past six months, as per data collected by More than 5,000 tech jobs were cut short by different firms in May alone before LinkedIn's announcement, added. Previously, Meta eliminated 21,000 jobs and Google parent Alphabet laid off 12,000 employees, Reuters reported.

LinkedIn offers tools to boost your sales.