LinkedIn to Cut 5% of Workforce: What the 875 Layoffs Mean for Tech's Job Market

LinkedIn has joined the wave of tech companies announcing layoffs, revealing plans to cut roughly 5% of its workforce—an estimated 875 employees—as part of a strategic reorganization. The Microsoft-owned professional networking platform disclosed the cuts in an internal memo from CEO Daniel Shapero on Wednesday morning.

In the memo, Shapero emphasized the need for LinkedIn to adapt to a shifting business landscape, focusing on profitability and long-term growth. While other tech firms have cited AI as a driver for layoffs, Shapero did not explicitly mention the technology in his communication.

“For us to meet this moment, we must ready ourselves to deliver a step change in impact across our products, businesses, and platforms, while continuing to operate more profitably,” Shapero wrote. “We need to reinvent how we work, with agile teams focused on our highest priorities, and by shifting investments toward areas such as infrastructure to fulfill our mission and vision over the long term. This requires hard prioritization and tradeoffs.”

The layoffs will affect five different divisions, with additional reductions in marketing campaigns, vendor spending, customer events, and underutilized office space. LinkedIn is headquartered in Sunnyvale, California.

While LinkedIn confirmed the layoffs to Fast Company, the company did not clarify the exact percentage of employees impacted, stating only that organizational changes were made “to best position ourselves for future success.”

LinkedIn’s Layoffs Amid Microsoft’s Mixed Earnings

The cuts come despite LinkedIn reporting a 12% year-over-year revenue increase in Microsoft’s latest earnings report. However, Microsoft also announced its first-ever voluntary buyout program last month, signaling broader workforce adjustments tied to its AI strategy. Microsoft acquired LinkedIn in 2016.

Despite the layoffs, Microsoft’s stock fell 0.6% in late trading on Wednesday, while the S&P 500 neared a record high.