LinkedIn cuts about 5% staff

Microsoft-owned LinkedIn told employees on May 13 that it would cut about 5% of its workforce, according to Reuters and Bloomberg reports. The move extends a 2026 round of technology layoffs that has hit companies even where revenue is still rising. LinkedIn employs more than 17,500 full-time workers globally, according to its website, putting the reduction at roughly 875 jobs. Microsoft said on April 29 that LinkedIn revenue rose 12% in the latest quarter. ### How large is the cut in concrete terms? LinkedIn’s workforce of more than 17,500 full-time employees means a 5% reduction would affect about 875 people. Reuters reported that employees were scheduled to be informed on Wednesday, citing people familiar with the matter. Bloomberg reported that the cuts would span multiple functions. The company has not published a public list of eliminated roles. Bloomberg reported that engineering, product and marketing were among the job functions affected, citing an internal memo from LinkedIn Chief Executive Daniel Shapero. Reuters reported it could not determine all of the teams involved. ### What did LinkedIn tell employees about the reason? Daniel Shapero told employees in a memo that LinkedIn needed to deliver greater impact to users and operate more profitably, Bloomberg reported. That memo, as described by Bloomberg, framed the reductions as part of a broader effort to reshape the organization rather than as a pullback from the company’s core business. A LinkedIn spokesperson told Reuters that the company had made organizational changes as part of its regular business planning to position itself for future success. Reuters also reported, citing a person familiar with the matter, that the rationale for the layoffs was not artificial intelligence replacing jobs at LinkedIn. ### Why are cuts happening even though revenue is still growing? Microsoft reported on April 29 that LinkedIn revenue increased 12% year over year in the quarter ended March 31. That figure came in Microsoft’s fiscal third-quarter earnings release, which also showed the parent company continuing to spend heavily on cloud and artificial-intelligence infrastructure. The contrast between revenue growth and layoffs has become more common across the sector in 2026. Reuters reported that LinkedIn’s cuts were tied to reorganizing teams and focusing personnel on areas where the business is growing. Bloomberg described the move as part of a broader effort to reduce headcount in what it called the AI age. ### Which parts of LinkedIn’s business are under the most scrutiny? LinkedIn makes money from recruiting tools, advertising, subscriptions and sales products tied to hiring and professional networking. Reuters described the company as shifting resources toward faster-growing areas of the business. Bloomberg reported that internal marketing and other teams would be reduced. Hiring activity has remained uneven across much of the technology sector. LinkedIn’s own platform sits close to that slowdown because recruiting products are tied to employer demand for workers. Neither Reuters nor Bloomberg reported that LinkedIn was exiting a business line. ### How does this fit into Microsoft’s broader picture? Microsoft has kept LinkedIn inside its Productivity and Business Processes segment since buying the company in 2016. On April 29, Microsoft said that segment generated $35.0 billion in quarterly revenue, with LinkedIn posting 12% growth inside it. Satya Nadella said in Microsoft’s earnings release that the company was focused on cloud and AI infrastructure and software. Bloomberg tied LinkedIn’s cuts to a wider industry push to improve profitability while companies spend aggressively on AI. ### What comes next for employees and investors? May 13 was the date employees were told about the reductions, according to Reuters and Bloomberg. The next public checkpoint for investors will be Microsoft’s next quarterly earnings report, where LinkedIn revenue will again be disclosed as part of the Productivity and Business Processes segment. Microsoft’s last earnings release came on April 29 for the quarter ended March 31. Any additional detail on severance, the number of roles eliminated by function, or the pace of hiring in the affected teams is likely to emerge through company disclosures or employee notices in the weeks ahead.