LinkedIn Reveals Change In Strategy, Leading To Job Cuts
Just recently, the CEO of LinkedIn, Ryan Roslansky, sent out an email to the members of the company, announcing several sweeping changes.
This also included the elimination of hundreds of roles within the firm. The new adjustments will have an impact on the Global Business Organization and China strategy of the company.
One of the primary changes, as per the new strategy, will lead to restructuring efforts. These will involve no less than 716 roles in the company.
Moreover, LinkedIn will be focusing its resources, time, and attention on its Global Business Organization (GBO) in an attempt to boost agility and growth.
Another change will be to realign the way tasks are completed in the firm, ensuring that teams are more closely integrated together. As per the CEO, this will help in supporting the customers in a better manner.
The new announcement also revealed that LinkedIn will be increasing its use of vendors. For this reason, it will be targeting growth and emerging markets more effectively.
In addition, the company wants to move towards a more streamlined approach to decision-making, which will include reducing the layers of its current management.
As a rule, the responsibilities will be re-divided, and the new roles will be given more control and ownership over their work.
The CEO further communicated that more than 250 new positions are likely to open up, but only in specific segments. These will include operations, account management, and new business.
The new hiring is all set to begin on the 15th of May, which will include onboarding people that will help LinkedIn target China with much ease.
Companies that are currently operating in China will be allowed to train, market, as well as hire competent people from abroad.
But this will mean that the current local jobs app being used in the country, InCareer, which is a branch of LinkedIn, will be phased out in August of 2023.
All these new changes, as per the CEO, are a part of the firm’s effort to mold itself according to the new changes in the behavior of the customers. The company also revealed that it has had slow revenue growth.
Thus, a new direction has been set for the growth of the company, and to ensure that it develops further in the upcoming year and beyond.
The Reasons For The New Changes
Roslansky has emphasized that the platform has noted significant changes in the customer landscape in recent years. Therefore, it has become imperative for it to bring in new strategies.
He also revealed that the company has been recording slower growth in revenue in these years, which has forced its hand to develop more sustainable strategies.
As a result, the company will be restructured to remain competitive and to make sure that its platform remains in action.
The Main Focus Of The New Strategy
The primary focus of the Global Business Organization (GBO) strategy is going to be focusing on reorganizing the way tasks are done within the firm.
Moreover, employees and the firm as a whole will be aiming to become more agile and boost teamwork for better cohesion.