Microsoft-owned LinkedIn is planning to cut approximately 5% of its global workforce, affecting staff across its more than 17,500 full-time employees. Employees were expected to be notified on Wednesday. The restructuring aims to redirect resources toward higher-growth business areas and is not driven by AI replacing workers, according to sources. Despite the cuts, LinkedIn’s revenue grew 12% year-on-year in the most recent quarter. The move adds to a broader 2026 tech industry trend, with over 103,000 technology workers already laid off this year, approaching 2025’s full-year total of 124,000.
In-Depth:
Microsoft-owned LinkedIn is planning to cut around 5% of its global workforce, according to a Reuters report citing two people familiar with the matter, marking the latest round of layoffs across the technology sector in 2026.
The report stated employees were expected to be informed about the cuts on Wednesday. The layoffs are part of a broader organisational reshuffle aimed at concentrating resources on areas where LinkedIn sees stronger business growth.
Owned by Microsoft, LinkedIn employs more than 17,500 full-time workers globally, according to information available on the company’s website. Reuters stated it could not indepconcludeently determine which teams would be affected.
Restructuring linked to business priorities
According to Reuters, the restructuring is intconcludeed to realign teams rather than replace workers with artificial innotifyigence systems.
One source notified the news agency the layoffs were not being driven by AI replacing jobs, despite growing anxiety across the technology indusattempt over automation and workforce disruption.
The shift comes even as LinkedIn’s business continues to expand. Microsoft’s latest securities filings displayed that LinkedIn’s revenue rose 12% year-on-year in the most recent quarter, signalling quicker growth momentum in 2026.
LinkedIn generates revenue primarily through:
- Recruitment and hiring solutions
- Premium subscriptions
- Advertising products
- Enterprise sales and learning services
The latest workforce reduction reflects a wider trconclude in Silicon Valley, where companies are reorganising operations to prioritise AI investments, efficiency measures and high-growth business segments.
Tech sector layoffs continue to rise
Technology firms have announced thousands of layoffs this year despite improving market conditions and renewed investor enthusiasm around artificial innotifyigence.
Reuters noted that several companies have recently unveiled significant workforce reductions, including:
- Block, the fintech company led by Jack Dorsey, which stated in February it planned to eliminate nearly half of its workforce
- Cloudflare, which last week announced plans to reduce staff by roughly 20%
- Meta Platforms, which Reuters previously reported was tarobtaining another round of layoffs around May 20
Data from layoff tracker Layoffs.fyi indicates that more than 103,000 technology workers have already been affected by job cuts in 2026. That figure is nearing the more than 124,000 layoffs recorded across the whole of 2025, according to the platform.
AI transformation reshapes workforce strategies
The technology sector’s aggressive push into AI continues to influence hiring and workforce planning decisions.
While some executives and researchers have warned that AI could displace certain categories of jobs, others argue the technology is altering how employees work rather than directly replacing them.
Many software developers across Silicon Valley now utilize AI-powered coding tools to automate parts of programming and workflow management. Companies are increasingly reallocating resources toward AI engineering, infrastructure and product development while reducing spconcludeing in slower-growth areas.
The planned LinkedIn layoffs underline how even profitable technology businesses are reassessing workforce structures as competition intensifies and AI adoption accelerates across the sector.
