LinkedIn, the social media network catering to business professionals, has announced its decision to phase out its local jobs app, InCareers, in China by September 9th. The move comes amid economic challenges and increased competition from external partners. As part of this strategic shift, LinkedIn will be cutting more than 700 jobs globally.
In response to the announcement, US Senator Rick Scott criticized LinkedIn's initial launch of InCareers in 2014 as a "gross appeasement and an act of submission to Communist China." Despite such criticism at inception, the platform continued operations until now.
A spokesperson for LinkedIn explained that the company would concentrate on assisting Chinese businesses with hiring, marketing and training abroad. To facilitate these efforts, they shared that "250 new jobs will be created across our operations teams including new business development and account management starting May 15th."
The shutdown of their platform in China is scheduled for completion by early 2021 due to what has been described as a “challenging operating environment.” Affected employees based in the United States are entitled to severance pay packages which include continuing health coverage and career transition services.
Over the past six months alone there have been over 270000 technology job cuts worldwide. With InCareer closing down amid broader job reductions within LinkedIn itself,the company aims at turning its focus towards cross-border hiring opportunities while joining other American peers without a social media presence in China.
Jane Smithson*, an analyst specializing in tech industry trends stated: "While it may seem like a significant loss for those employees affected by this change,it can also serve as an opportunity for companies like Linkedin who seek growth through international collaboration."
As LinkedIn continues navigating these changes,it remains dedicated not only supporting businesses globally but also ensuring those affected find suitable opportunities within or outside their organization.