Microsoft-owned LinkedIn is reportedly preparing to lay off around 5% of its global workforce, joining a growing list of technology companies restructuring operations in 2026 despite continued investments in artificial intelligence and infrastructure.
The layoffs are expected to affect roughly 875 employees across multiple teams, as the company reorganizes operations and reallocates resources toward higher-growth business areas. Reports indicate that workers across marketing, engineering, product, and global operations divisions could be impacted.
TL;DR
- LinkedIn is reportedly planning to cut about 5% of its workforce, impacting nearly 875 employees globally.
- The layoffs come despite LinkedIn reporting 12% year-over-year revenue growth in Microsoft’s latest earnings report.
- CEO Daniel Shapero reportedly told employees the company must “reinvent how we work” and prioritize high-growth infrastructure investments.
- The move adds to a wider 2026 tech-sector layoff wave that has already crossed 100,000 job cuts globally.
LinkedIn Restructures Teams Despite Revenue Growth
According to a Reuters report citing sources familiar with the matter, LinkedIn plans to notify employees about the workforce reduction as part of a broader organizational reshuffle. The company reportedly employs over 17,500 workers globally, meaning the layoffs could affect nearly 875 people.
The cuts come at a surprising time for the company, considering LinkedIn recently reported 12% revenue growth during Microsoft’s latest quarterly earnings period. However, executives reportedly believe the company needs to streamline operations and focus more heavily on infrastructure and productivity-oriented investments.
In an internal memo viewed by Business Insider, LinkedIn CEO Daniel Shapero reportedly said the company needs to “reinvent how we work,” while also scaling back spending on marketing campaigns, customer events, vendor contracts, and office space usage. The report also noted that LinkedIn plans to close its Graz, Austria office.
“As part of our regular business planning, we have made the difficult decision to reduce organizational layers and align resources to strategic priorities,” LinkedIn reportedly said in a statement cited by multiple publications.
AI Spending And Efficiency Push Continue Across Big Tech
While LinkedIn has not directly linked the layoffs to AI replacing workers, the broader tech sector continues to undergo restructuring as companies prioritize AI infrastructure, automation, and operational efficiency.
Parent company Microsoft has simultaneously been increasing investments in AI infrastructure and data centers, while also implementing cost-cutting initiatives across parts of its business. Reports suggest Microsoft’s capital expenditure plans could exceed $100 billion this year as competition intensifies in the AI race.
LinkedIn now joins companies such as Meta, Cloudflare, and Amazon in trimming workforce numbers throughout 2026. Reuters previously reported that over 103,000 technology workers had already been affected by layoffs this year, with AI adoption and restructuring efforts cited as key drivers behind the cuts.
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Interestingly, LinkedIn Co-founder Reid Hoffman recently cautioned that some companies may be using AI as a convenient explanation for layoffs, even when broader business corrections and pandemic-era overhiring are also contributing factors.
The latest development signals that even profitable technology firms are continuing to rebalance operations as the industry shifts toward AI-focused growth strategies and leaner organizational structures.
