LinkedIn, the professional social networking service, will be closing down its Chinese version due to increased competition and strict regulations. The company will also be laying off 716 employees globally. These employees include the engineering and marketing teams in China, due to falling demand. It has not been disclosed how many of these layoffs will be in China.
InCareer, the job application site that replaced LinkedIn’s localized social networking site in 2021, will be shut down. When LinkedIn started a Chinese-language version of its website in 2014. It decided to comply with Beijing’s strict laws and censor content. This resulted in several U.S. journalists and activists having their profiles blocked due to prohibited content.
The decision to shut down InCareer was due to intense competition and economic challenges. The service will cease to exist in three months, on August 9th. But LinkedIn will still keep its presence in China to assist local organizations. They will assist local organizations in hiring and training employees outside of the country.
Facebook and Twitter have been blocked in China for more than a decade. LinkedIn’s decision to close down its Chinese version is part of a growing trend of Western companies reducing their presence in the Chinese market. It is due to challenging regulatory environments and strong domestic competition.
LinkedIn’s CEO, Ryan Roslansky, stated that this closing was due to low revenue, slow growth, and changes in customer behavior. This big decision comes as Chinese officials increase scrutiny of American companies. It is due to a counter-espionage regulation that has broadened the definition of documents and data relevant to national security.
Despite the closure of InCareer. LinkedIn plans to retain a presence in China to help local groups hire and train employees from overseas. The company will also be creating 250 jobs in other areas. This decision shows LinkedIn’s dedication to the Chinese market despite the challenges it faces. The company is optimistic about the future and will focus on areas where it sees greater growth potential.