• LinkedIn, Microsoft's professional networking unit (MSFT), is preparing to announce layoffs on Wednesday, according to people familiar with the matter.
  • The cuts will affect approximately 5% of LinkedIn's workforce, continuing a multi-quarter cost-reduction effort at Microsoft.
  • The move aligns with Microsoft's broader strategy to reallocate resources toward AI and cloud initiatives amid industry-wide recalibration.

LinkedIn to Slim Down as Microsoft Shifts Focus

Microsoft Corp.'s LinkedIn unit is set to announce layoffs affecting about 5% of its staff on Wednesday, according to sources familiar with the matter. The reduction is part of an ongoing restructuring at the tech giant, which has been streamlining costs across divisions including Azure and GitHub to reinvest in artificial intelligence and cloud computing.

The exact number of roles affected was not disclosed, but LinkedIn employed roughly 20,000 people prior to the cuts. The company offered severance and transition support to impacted employees, said one of the people, who asked not to be identified discussing internal plans. Microsoft declined to comment on the layoffs.

This is not the first time LinkedIn has undergone workforce reductions under Microsoft's ownership. The unit cut hundreds of jobs in 2023 and 2024 as part of earlier efficiency drives. The latest round comes as Microsoft reports strong revenue growth — with double-digit gains in recent quarters — but faces investor scrutiny over massive capital expenditure commitments for AI infrastructure, which have pressured margins.

“We are constantly evaluating our business to ensure we are aligned with our strategic priorities,” a LinkedIn spokesperson said in an emailed statement, without confirming the layoffs. “This means making changes to where we invest and, at times, adjusting our workforce.”

The cuts reflect a broader trend across Big Tech, with Amazon (AMZN), Meta, and Salesforce also reducing headcount to focus on AI and automation. While Microsoft's cloud and AI businesses are booming, the company is balancing growth with efficiency, leading to periodic adjustments.

Attempts to reach Microsoft for further comment were unsuccessful. This story is developing and will be updated as new information becomes available.

Update: This article has been updated to reflect that the layoffs are expected to be announced on Wednesday.