SAN FRANCISCO, May 13, 2026, 08:56 PDT
LinkedIn is set to lay off around 5% of its staff, adding to the tech industry’s persistent job cuts—even as the Microsoft-owned networking platform continues to expand. The news was expected to land with employees this day, according to two people with knowledge of the decision who spoke to Reuters. One of the sources pointed to a push to restructure teams around growth priorities, insisting there’s no stated agenda to swap employees for artificial intelligence, or AI.
The cuts land just as Microsoft posts stronger numbers from LinkedIn—revenue climbed 12% for the quarter ended March 31, outpacing its constant-currency growth after stripping out currency swings. Parent Microsoft, for its part, booked $82.9 billion in revenue for the quarter.
LinkedIn isn’t exactly fading from view. The company reported last month it now counts more than 1.3 billion members. Its AI-powered Talent Solutions hiring tools? They’re generating annualized revenue above $450 million at the current rate, according to company figures.
LinkedIn is aiming for greater profitability and will make painful cuts, CEO Daniel Shapero told employees in a memo cited by Business Insider. The shakeup affects jobs across the Global Business Organization, plus marketing, product, and engineering, according to the memo seen by the outlet.
Shapero, according to Bloomberg, informed staff that the network needs to boost its impact for users and improve profitability. The job cuts hit across several departments—engineering, product, marketing all included.
LinkedIn lists over 17,500 full-time staff around the globe on its company page. A 5% reduction would mean about 875 positions, assuming it’s spread evenly, but the company hasn’t confirmed any specific figure or outlined how cuts would play out in different regions.
Microsoft was recently trading at $404.69, not much movement to note. That price keeps its market cap sitting around $3.01 trillion.
LinkedIn now joins a growing roster of tech companies revising headcount as they chase AI investment and rethink how they do business. Cloudflare this week announced plans to cut over 1,100 positions worldwide—including 224 in San Francisco—following remarks from its co-founders about restructuring the company for what they called the “agentic AI era,” a term for AI tools capable of handling more independent tasks. San Francisco Chronicle
Microsoft’s latest disclosure underscores why leadership is dialing up the urgency on spending priorities. Costs climbed inside the Productivity and Business Processes division—which houses LinkedIn—as the company funneled more cash into AI infrastructure, computing power, talent, and data, all aimed at pushing product development.
Trimming staff during a period of expansion carries risks. Slashing roles in sales, hiring products, or engineering teams connected to LinkedIn’s main growth drivers might shave off costs quickly, but it could bog down progress in areas attracting fresh capital and customer interest.
LinkedIn isn’t pointing to a soft quarter here. Instead, Microsoft’s professional network is tightening its lineup, aiming for sharper focus and trimming expenses, as the parent moves dollars and talent toward AI-centric bets.
