Microsoft-owned LinkedIn to lay off nearly 5% of workforce
What's the story
Microsoft-owned professional networking platform, LinkedIn, is gearing up to cut nearly 5% of its global workforce. The move comes as part of a larger restructuring effort within the tech industry. Even though some sectors are witnessing steady revenue growth, companies are still tightening their operations in 2026.
Strategic shift
Layoffs part of internal reorganization to focus on business growth
The layoffs are part of an internal reorganization aimed at focusing resources on areas of stronger business growth. A LinkedIn spokesperson confirmed these changes, saying, "As part of our regular business planning, we've implemented organizational changes to best position ourselves for future success." The company has over 17,500 full-time employees globally but it remains unclear which teams will be affected by the cuts.
Financial performance
LinkedIn's core business showed growth in Microsoft's quarterly results
The layoffs come despite LinkedIn's core business showing growth. In Microsoft's latest quarterly results, LinkedIn's revenue rose 12% year-on-year or 9% in constant currency terms. The platform generates income through recruitment tools, subscriptions, and professional services. Despite this financial performance, the company is joining a wider wave of cost-cutting measures across the tech sector.
Industry trends
Microsoft offered voluntary buyouts to 7% of US workforce
The restructuring comes after parent company Microsoft recently offered voluntary buyouts to approximately 7% of its US workforce. Those eligible reportedly include senior directors and employees whose age and years of service total 70 or more. According to Layoffs.fyi, over 103,000 tech employees have been laid off so far in 2026 amid continued volatility in the industry despite strong earnings in several major firms.