LinkedIn plans fresh layoffs as tech companies continue restructuring amid AI shift
LinkedIn, owned by Microsoft, is set to announce layoffs affecting around 5% of its workforce—approximately 875 employees—as part of restructuring to prioritize AI-driven growth and operational efficiency, despite a 12% year-on-year revenue increase in the latest quarter. The move aligns with broader tech industry trends, where companies like Block and CrowdStrike have also cut jobs amid AI-driven shifts and cost-control pressures, with over 103,000 tech layoffs already reported globally in 2026.
LinkedIn, the Microsoft-owned professional networking platform, will announce layoffs affecting about 5% of its workforce—around 875 employees—on Wednesday, according to Reuters sources familiar with the matter. The cuts aim to reallocate resources toward faster-growing business areas and improve efficiency, despite LinkedIn’s revenue rising 12% year-on-year in the most recent quarter, per Microsoft’s regulatory filings. The layoffs are not directly tied to AI replacing jobs but reflect broader tech industry restructuring as companies prioritize AI infrastructure, automation, and data centers while controlling costs. LinkedIn employs over 17,500 people globally, though the company has not specified which departments or regions will be impacted. This trend follows recent layoffs at other major tech firms. Block, founded by Jack Dorsey, announced plans to cut nearly half its workforce, while CrowdStrike disclosed intentions to reduce roughly 20% of its staff. Reports also suggest additional workforce reductions at other companies amid ongoing restructuring. The tech sector has seen over 103,000 layoffs globally in 2026, nearing the 124,000 jobs cut in all of 2025, according to Layoffs.fyi. While AI is reshaping workflows—such as accelerating coding tasks with AI assistants—executives and analysts debate whether automation will displace workers or merely transform roles. LinkedIn’s move underscores how even profitable, growing tech businesses are recalibrating operations amid AI competition and efficiency pressures. The company’s restructuring aligns with industry-wide shifts, despite its recent financial growth.
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