LinkedIn has announced the shutdown of its local job app in China, InCareer, along with the layoffs of 716 employees out of its 20,000-strong workforce.

“As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees,” LinkedIn CEO Ryan Roslansky wrote in an email to employees.

The professional network, owned by Microsoft, will maintain its talent, marketing and learning businesses in China, while phasing out InCareer by Aug. 9, said Roslansky.

LinkedIn had already closed most of its operations in China due to state content restrictions in 2021, but maintained its presence with the launch of InCareer.

“Though InCareer experienced some success in the past year thanks to our strong China-based team, it also encountered fierce competition and a challenging macroeconomic climate,” Roslansky added.

The LinkedIn CEO promised severance pay, continuing health coverage, and career transition services to U.S. benefit-eligible employees.

“Benefits for employees outside the U.S. will align with the employment laws and local practices in each country. For both our GBO and China employees, we have an internal mobility process for impacted team members to help find a new role if there’s a skill fit,” Roslansky said, adding that the company was “opening up more than 250 new roles in specific segments of our operations, new business and account management teams starting on May 15.”

According to the AIM Group’s estimate, LinkedIn is the world’s second largest firm in terms of revenue from the recruitment business, following Japan-based Recruit Holdings.

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