
Microsoft-owned LinkedIn to Undertake Consolidation Efforts, Resulting in Approximately 5% Workforce Reduction
LinkedIn to Announce Layoffs Amid Wider Technology Sector Cuts
LinkedIn, the Microsoft-owned social network, is preparing to announce layoffs on Wednesday, according to two people familiar with the matter, who spoke to Reuters. The move marks a widening of technology sector cuts this year, as the company reorganizes its teams and focuses employees on areas where its business is growing.
The layoffs are expected to affect around 5% of LinkedIn's staff, with the company currently employing more than 17,500 full-time employees globally, according to its website. Reuters was unable to determine which teams will be affected by the cuts.
Despite the layoffs, LinkedIn's revenue continues to grow. In the just-ended quarter, revenue rose 12% from the same period last year, with growth accelerating in 2026, according to Microsoft's securities filings. LinkedIn generates revenue through the sale of recruiting tools and subscriptions.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
It is worth noting that the layoffs are not a result of artificial intelligence replacing jobs at LinkedIn, according to one of the people familiar with the matter. The move is instead aimed at streamlining the company's operations and focusing resources on areas where it is experiencing growth.
| Comparison of LinkedIn's Revenue Growth | 2025 | 2026 (Q1-Q2) | 2026 (Q3-Q4) |
|---|---|---|---|
| Revenue Growth | N/A | 8% | 12% |
| Notes | Growth accelerated in 2026 | Accelerated growth in 2026 |
Note: Revenue growth figures are based on Microsoft's securities filings and represent the percentage increase in revenue from the same period in the previous year.
Investor Takeaway
Microsoft-owned LinkedIn is planning a 5% workforce reduction, which may impact its operations and growth prospects.
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