LinkedIn has announced a significant change in its Global Business Organization (GBO) and China strategy, which will result in 716 job cuts. Ryan Roslansky, LinkedIn’s CEO, shared the news in an email to all LinkedIn employees, stating that the company needed to adapt to the rapidly changing market and customer behavior.
The restructuring will involve a refocus on the GBO, with the company reorganizing how work gets done, becoming more agile, and aligning teams for growth. This will include integrating components of the Business Productivity team into other parts of the company.
LinkedIn will also expand the use of vendors and reduce management roles, and broaden responsibilities to make decisions more quickly. The company will be opening up over 250 new roles in specific segments of their operations, new business, and account management teams, starting on May 15.
In terms of its China strategy, LinkedIn will focus on assisting companies operating in China to hire, market, and train abroad. This will involve maintaining their Talent, Marketing, and Learning businesses while phasing out InCareer, their local jobs app in China, by August 9, 2023.
The job cuts will impact both GBO and China employees, with U.S. benefit-eligible employees receiving severance pay, continuing health coverage, and career transition services. Benefits for employees outside the U.S. will align with employment laws and local practices in each country. LinkedIn has an internal mobility process to help impacted team members find a new role if there is a skill fit.
Weiner stated that while these decisions were essential for LinkedIn’s business, they also meant that some of their teammates would be leaving for new opportunities. The company is committed to providing full support to those impacted.
As LinkedIn enters a new decade, Weiner expects the macro environment to remain challenging. The company plans to invest in strategic growth areas while managing expenses to deliver on its vision and run the business well. LinkedIn’s focus over the next week will be on supporting impacted colleagues. The company will unveil its FY24 plan in the upcoming weeks.
In response to this announcement, some LinkedIn employees have expressed disappointment and concern for their colleagues who will be affected by the job cuts. One employee, who wished to remain anonymous, stated, “It’s a difficult time for everyone, especially those who are losing their jobs. I’m worried about their well-being and hope that LinkedIn will provide them with the support they need during this transition.”
Another employee expressed hope for the future, saying, “While it’s sad to see our colleagues go, I believe that these changes are necessary for LinkedIn to stay competitive in the market. I’m confident that our leadership team will guide us through this transition and set us up for success in the years ahead.”
This news comes on the heels of LinkedIn’s 20th-anniversary celebration, where the company reflected on its accomplishments and looked ahead to the future. As LinkedIn prepares for the next phase of growth, it is clear that the company is focused on adapting to the changing market and ensuring its long-term success.
LinkedIn has stated that it is committed to providing support to its impacted employees and has an internal mobility process in place to help them find new roles within the company if there is a skill fit. U.S. benefit-eligible employees will receive severance pay, continuing health coverage, and career transition services, while benefits for employees outside the U.S. will align with the employment laws and local practices in each country.
Despite the job cuts, LinkedIn is also opening up more than 250 new roles in specific segments of its operations, new business, and account management teams starting on May 15. This move signals that LinkedIn is not only cutting costs but also investing in strategic growth areas.
The company will provide more details about its plans for FY24 in the coming weeks as it prepares to unveil its new strategy. In the meantime, LinkedIn employees will come together at Company Connect to discuss the future and support their colleagues during this transition.