LinkedIn To Layoff Hundreds of Employees As Tech Job Cuts Continue In AI Era
LinkedIn To Layoff Hundreds of Employees As Tech Job Cuts Continue In AI Era
Microsoft-owned LinkedIn is reportedly laying off around 5% of its global workforce as the company restructures teams and shifts focus toward growing business areas amid the wider AI-driven transformation in the technology sector.
Professional networking platform LinkedIn is preparing to lay off hundreds of employees across multiple teams as part of a fresh round of global tech-sector job cuts.
According to reports, the Microsoft-owned company plans to reduce nearly 5% of its workforce, which could affect around 875 employees worldwide. LinkedIn currently employs more than 17,500 people globally.
The company is expected to inform employees about the layoffs through internal communication and calendar notifications. Reports suggest the affected departments may include engineering, marketing, product and business operations teams, though the full extent of the restructuring has not been officially disclosed.
In a statement quoted in reports, a LinkedIn spokesperson said the decision is part of the company’s “regular business planning” process and organisational changes are being implemented to better position the company for future growth.
LinkedIn CEO Daniel Shapero reportedly informed employees through an internal memo that the company is reorganising teams and focusing resources on areas where business growth is stronger.
Despite the layoffs, LinkedIn’s business performance has remained strong. Microsoft’s recent financial filings showed LinkedIn revenue grew by nearly 12% in the latest quarter compared to the same period last year. The company continues to earn significantly through recruitment tools, premium subscriptions and advertising services.
Reports also stated that the layoffs are not directly linked to artificial intelligence replacing jobs. However, the technology industry overall is rapidly restructuring operations around AI adoption and automation.
Several major technology companies have announced job cuts this year as they redirect investments toward artificial intelligence infrastructure and cost optimisation. Industry tracker Layoffs.fyi estimates that more than 1 lakh tech employees globally have already been affected by layoffs in 2026.
LinkedIn’s parent company Microsoft has also been increasing spending on AI infrastructure and cloud computing. Reports indicate the company plans capital expenditure of nearly $190 billion this year as competition in the AI race intensifies.
Apart from workforce reduction, LinkedIn is reportedly cutting costs related to office spaces, marketing campaigns, vendor expenses and customer events. The company is also expected to shut down some underutilised office locations, including its Graz office in Austria.
The latest layoffs highlight the continuing transformation taking place across the global technology industry, where companies are balancing profitability, AI investments and operational restructuring at the same time.
