LinkedIn plans 5% workforce reduction
- LinkedIn planned to tell employees on May 13 it would cut about 5% of staff as the Microsoft-owned platform reorganizes teams. - Reuters reported the reduction at roughly 5% of more than 17,500 workers, while Microsoft filings showed LinkedIn revenue rose 12% last quarter. - Microsoft reports fiscal fourth-quarter results in late July, when investors will look for further detail from Satya Nadella and Amy Hood.
LinkedIn planned to inform employees on May 13 that it would cut about 5% of its workforce, according to Reuters, making the Microsoft-owned professional network the latest large technology company to reduce headcount in 2026. Reuters reported that the cuts were part of a reorganization aimed at moving personnel toward areas where the business is growing. Microsoft’s latest quarterly filing showed LinkedIn revenue rose 12% in the quarter ended March 31, even as the company moved ahead with the reduction. GeekWire reported that the affected areas include marketing, product and engineering, citing company comments and earlier Bloomberg reporting. ### How big is the cut, and how many jobs does that imply? LinkedIn employs more than 17,500 full-time workers globally, according to Reuters, which cited the company’s website. A 5% reduction would amount to roughly 875 positions, based on that workforce figure. Reuters said the company planned to notify staff on Wednesday, May 13. (money.usnews.com) GeekWire reported that LinkedIn did not specify how many employees would be affected in its statement to that publication. The outlet said the company described the move as part of “regular business planning” and said it had made organizational changes to position itself for “future success.” (money.usnews.com) ### Which parts of LinkedIn are being hit? GeekWire reported on May 13 that LinkedIn was cutting staff across engineering, product and marketing. Reuters said it could not determine all of the teams affected, but one person familiar with the matter said the company was reorganizing teams and shifting personnel toward areas of growth. (geekwire.com) Daniel Shapero, who became LinkedIn’s chief executive last month after serving as chief operating officer, disclosed the cuts in an internal memo cited by Bloomberg and summarized by GeekWire. Ryan Roslansky, GeekWire said, was elevated to a broader Microsoft role overseeing both LinkedIn and Microsoft Office. (geekwire.com) ### Why is LinkedIn cutting jobs while revenue is still rising? Microsoft said on April 29 that LinkedIn revenue increased 12% year over year in the quarter ended March 31. The same earnings release showed Microsoft’s total revenue rose 18% to $82.9 billion, while the company’s AI business passed a $37 billion annual revenue run rate, according to Chief Executive Satya Nadella. (geekwire.com) Reuters reported that one person familiar with the matter said the rationale for the LinkedIn layoffs was not artificial intelligence replacing jobs at the company. The report said the cuts were tied instead to a reorganization and a focus on business areas that are expanding. (microsoft.com) GeekWire reported that LinkedIn had crossed $5 billion in quarterly revenue for the first time in January and said the layoffs came despite record financial performance. The company was acquired by Microsoft for $26.2 billion a decade ago, GeekWire said. ### How does this fit into Microsoft’s broader cost moves? (money.usnews.com) GeekWire reported that Microsoft cut 6,000 employees, about 3% of its global workforce, roughly a year ago and eliminated another 9,000 jobs last July. The outlet also said Microsoft recently offered voluntary retirement to thousands of employees and has been flattening management layers while changing compensation structures. (geekwire.com) Reuters placed LinkedIn’s move alongside other 2026 technology layoffs. The news agency said Block announced plans in February to eliminate nearly half its workforce, Cloudflare disclosed a roughly 20% cut last week, and Meta Platforms was targeting a May 20 layoff in an earlier Reuters report. Layoffs.fyi has counted more than 103,000 tech job cuts so far this year, Reuters said. (geekwire.com) ### What should readers watch next? Microsoft’s next regular earnings update is expected in late July, based on the company’s quarterly reporting calendar and market schedules. Investors will be looking for any additional comment on LinkedIn staffing, operating priorities and spending as Satya Nadella and Chief Financial Officer Amy Hood discuss the fiscal fourth quarter. (money.usnews.com) May 20 is also a date already on the technology layoff calendar, according to Reuters’ reporting on Meta’s planned cuts. That gives investors and employees another near-term marker as companies continue to disclose workforce changes across the sector. (money.usnews.com) (microsoft.com)