LinkedIn is preparing to cut roughly 5% of its workforce, adding another major name to a growing list of technology companies scaling back staff in 2026 despite strong revenue growth and aggressive investment in artificial intelligence.
The Microsoft owned professional networking platform informed employees about the layoffs Today, according to reports from Reuters and internal company communications reviewed by Business Insider. LinkedIn employs more than 17,500 people globally, meaning the reductions could affect hundreds of workers across multiple divisions.
The company said the restructuring is tied to shifting resources toward areas where business demand is growing. Teams impacted reportedly include marketing, engineering, product and LinkedIn’s Global Business Organization.
The decision arrives during a strange moment for the tech industry. Revenue across many large software companies continues to climb, yet layoffs have become increasingly common as executives race to control spending and redirect money toward AI infrastructure.
LinkedIn says the cuts are about priorities
According to an internal memo from LinkedIn CEO Daniel Shapero, the company plans to reduce hiring costs while scaling back spending in several areas including marketing campaigns, office space, vendor contracts and customer events.
Executives framed the move as part of a broader effort to make LinkedIn more agile and focused on long term growth. The company also said the layoffs were not directly tied to AI replacing workers, though the wider industry conversation around automation continues to shape employee concerns.
LinkedIn’s parent company, Microsoft, has also spent months tightening expenses while dramatically increasing investments tied to AI infrastructure and data centers.
Earlier this year, Microsoft introduced buyout offers for some long serving employees. The company is expected to spend billions expanding its AI capabilities as competition intensifies across Silicon Valley.
LinkedIn joins a widening wave of tech layoffs
The layoffs at LinkedIn reflect a larger shift unfolding across the technology sector.
Companies that once prioritized rapid hiring and expansion are now restructuring around efficiency and AI development. Several major firms announced cuts in recent months even while reporting healthy earnings.
Meta Platforms has reportedly planned another round of reductions later this month. Payments company Block previously announced significant workforce cuts, while Cloudflare also reduced staffing as executives reevaluated spending priorities.
Data from Layoffs.fyi shows more than 103,000 tech workers have already lost jobs this year. That figure is rapidly approaching the total number of layoffs tracked across all of 2025.
The trend has created growing anxiety across the industry, especially among workers who once viewed software jobs as among the safest and most stable careers in corporate America.
AI investment is changing Silicon Valley
The current wave of layoffs is unfolding alongside a massive financial push into AI.
Many companies now view artificial intelligence as the defining business opportunity of the next decade. That shift has forced executives to rethink budgets, staffing and long term priorities.
Some roles are evolving rather than disappearing entirely. Engineers increasingly rely on AI tools to generate code, automate testing and accelerate product development. Other departments are being asked to do more with smaller teams.
At the same time, many workers worry the technology could permanently reduce demand for traditional corporate roles.
Industry leaders remain divided on how disruptive AI will become. Some executives argue the technology will boost productivity while creating new categories of jobs. Others warn that large parts of the white collar workforce could face significant disruption over the next several years.
For companies like LinkedIn, the challenge now is balancing profitability with innovation while maintaining employee confidence during another uneasy chapter for the tech sector.
Despite the layoffs, LinkedIn’s business remains strong. Revenue grew 12% in the latest quarter, according to Microsoft filings, marking faster growth than the company posted during parts of 2025.
That combination of rising profits and shrinking payrolls has become one of the defining contradictions of Silicon Valley’s AI era.
