The world’s largest social media platform for professionals, LinkedIn, has announced its decision to cut 716 positions worldwide due to a slower revenue growth than expected. In addition, the company will also shut down its jobs app in mainland China.
The Chief Executive Officer, Ryan Roslansky, announced the decision in a letter addressed to employees of the platform.
“Over the years we’ve had to make hard decisions to ensure we were setting the company up to deliver on our vision, and I’m sharing one of those decisions today. As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees,” Roslansky wrote.
He went on to acknowledge the contribution of the affected employees and pledged support for their transition. “Our colleagues who are impacted by this announcement have all made invaluable contributions to our company. I want to recognize the impact this decision has on the lives of those individuals. And I want all of you to know that the entire leadership team and I are dedicated to helping our colleagues during this transition and ensuring that they are treated with the care and respect they deserve,” he added.
The company has attributed the job cuts to the changes in customer behavior and slower revenue growth globally.
The announcement of job cuts comes after a series of reports that suggest LinkedIn’s revenue has been declining, despite a significant increase in user numbers.
The company has previously reported revenue growth of 25% in the first quarter of 2021, but this has slowed to 16% in the second quarter.
LinkedIn has also confirmed that it will be closing its jobs app in mainland China, where it has been operating since 2014. The decision was made due to the country’s restrictive policies on foreign-owned tech companies.