LinkedIn announces a change in global strategy resulting in job cuts
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LinkedIn announces a change in global strategy resulting in job cuts

A recent internal email from LinkedIn CEO Ryan Roslansky announced sweeping changes that eliminated hundreds of roles.

The adjustments intended to impact the company’s Global Business Organization and China strategy are summarized below:

  • A total of 716 jobs will be affected by the restructuring.
  • LinkedIn is realigning its Global Business Organization (GBO) to drive growth and agility.
  • The company plans to realign the way it works and integrate teams more closely to better serve customers.
  • Increased use of vendors will be implemented to more effectively serve emerging and growth markets.
  • In order to streamline decision-making, management levels are being reduced and responsibilities expanded.
  • Over 250 new positions are expected to open beginning May 15 in certain operating segments, new business and account management teams.
  • LinkedIn will shift its focus to China to help companies operating in China to hire, market and train abroad.
  • LinkedIn’s local job app in China, InCareer, will be shut down by August 9, 2023.
  • These changes are part of the company’s effort to adapt to changing customer behavior and slower revenue growth, and to set a new direction for the platform’s growth and evolution in FY24 and beyond.

The reasons for the changes

Roslansky announced these changes as part of an effort to guide LinkedIn through a rapidly changing landscape.

The decision to restructure comes in response to changing customer behavior and slower revenue growth.

Roslansky explained that the company needs to adjust its strategy to remain competitive and effective in a changing market.

A change of focus

The next phase of growth for LinkedIn’s Global Business Organization is focused on three themes:

  • Reorganize how work gets done
  • become more agile
  • Align teams for growth

LinkedIn plans to integrate teams more tightly to better support customers, expand the deployment of vendors to serve emerging and growth markets, and reduce management roles to make decisions faster.

In addition to these changes, starting in May, more than 250 new roles will open in specific operating segments, new business and account management teams.

Changes to LinkedIn’s China strategy

Roslansky revealed a shift in LinkedIn’s China strategy. The focus will now be on helping companies operating in China to recruit, market and train abroad.

This includes maintaining Talent, Marketing and Learning businesses while InCareer, LinkedIn’s local jobs app in China, will be phased out by August 9, 2023.

Support for affected employees

LinkedIn is committed to providing full support to those affected by these changes.

Eligible employees in the US receive severance pay, health insurance and career transition services. Benefits for non-US employees are governed by the labor laws and local practices in each country.

There will also be an internal mobility process to help find new roles for affected team members when skills match.

LinkedIn’s vision for the future

As LinkedIn enters its third decade in business, it is gearing up for what may be the most momentous period in its history.

As AI accelerates changes in the global economy and job market, LinkedIn’s role in helping members and customers navigate these changes to access business opportunity becomes increasingly important.

The company expects the macroeconomic environment to remain challenging but stands ready to adapt and manage spending while investing in strategic growth areas.

Featured image: Ascannio/Shutterstock
source: LinkedIn