The job service, LinkedIn is to lose out on its overall member count with it closing its remaining Chinese job service under the name InCareer, which also throws up a picture of losing as many as 716 jobs.
LinkedIn announced that it has closed its flagship service in China. The company was unable to run there due to multiple regulations. That forced LinkedIn to confine its Chinese presence to a mere job posting network, but that has also gone too far. The company is going to say goodbye to nearly 59 million members on the app.
And LinkedIn CEO Ryan Roslansky said the service will no longer continue on account of 'fierce competition and a challenging macroeconomic climate.' Which sounds pretty vague, but basically, LinkedIn has run into various restrictions and regulatory challenges regarding its Chinese operations, which now apparently have made it unworkable for the company to keep offering a limited China-only service.
According to Roslansky:
"We will focus our China strategy on enabling companies operating in China to hire, market, and train outside of China. This includes the continuation of our Talent, Marketing, and Learning businesses, and the deletion of InCareer, our local jobs app in China, by August 9, 2023."
The parent company of LinkedIn will look through its operations lens, but Microsoft is taking them up in China on steroids. Its cloud computing unit will drive enormous new potential in the market. Indicates that with new data privacy laws in China coming into effect, LinkedIn has been viewed under a microscope, and it's too great a gamble to roll the dice with the officials in Beijing, so Microsoft is instead pulling LinkedIn out of the market altogether and around one-third of the affected workers will be reassigned to new roles within the organization.
It is not a major blow in overall growth for LinkedIn, considering the changes the site has made to its operations in the region. Indeed, as pointed out, it would be impacted by an increase in the count of LinkedIn's members; however, 'members' and 'users' are not the same thing, and indeed, there are reports that the service was never a success in China either way.
In other words, it isn't because of any single reason you can point to and say: the given cause of LinkedIn's demise in China. But effectively, it means that the last remaining US social platform available inside the Great Firewall is gone, further segmenting the world wide web.
Which also underscores the new challenge facing TikTok: if China is making operating conditions so difficult for US social media apps, or blocking them outright, why should Western nations allow TikTok to keep operating?