LinkedIn Announces Shutdown of App in China and Elimination of 716 Jobs

LinkedIn, a company that offers users the professional social network of the same name for business contacts, announced on Tuesday that it will eliminate 716 jobs and shut down its InCareer app, available in China, which its American owner Microsoft justified by ‘intense competition’ and ‘difficult macroeconomic conditions’.

The tech giant was one of the few American internet companies that managed to establish a social network in China despite censorship and strict local regulations.

Microsoft offered the Chinese a version of its professional network while adhering to draconian measures through a joint local investment. LinkedIn’s CEO Ryan Roslansky stated that the job cuts are necessary for the company’s business streamlining and that it will increasingly rely on external contractors in the future.

He also mentioned that the changes will result in the creation of 250 new jobs, and a spokesperson for LinkedIn announced that employees who lost their jobs at the company will be able to compete for new positions.

In 2021, the company, known as a leader in business contacts, shut down the LinkedIn app in mainland China, citing ‘a challenging operational environment’ and ‘increased compliance requirements with local regulations’.

It was replaced by a simplified local version called InCareer, which allowed local professionals to continue finding and applying for jobs while staying connected with their network.

– After careful consideration, we made the decision to shut down InCareer as of August 9, 2023. Despite initial success, InCareer faced intense competition and difficult macroeconomic conditions, which ultimately led us to decide to discontinue our services in China – LinkedIn announced.

The network has been marginalized in recent years amid a plethora of innovative local applications.

Most American internet multinational social networks, such as Facebook, Twitter, Instagram, and YouTube, have long been blocked in China as they fail to comply with strict local laws and not always clear business rules.

Tech giants are under pressure to block all unwanted content and topics deemed politically sensitive on the internet in the name of social stability.

LinkedIn has faced criticism in recent years for removing dissident accounts and deleting politically sensitive content from its pages.