Microsoft-owned professional networking platform LinkedIn is cutting hundreds of jobs across several divisions despite reporting strong revenue growth, signalling another major restructuring move sweeping through the technology industry in 2026.
According to reports by Reuters, the company is reducing roles across its Global Business Organization, marketing, engineering and product teams. While Reuters reported that the layoffs could impact around 5 per cent of LinkedIn’s workforce, roughly 875 employees based on its reported headcount, the company disputed the exact figure without revealing the final number.
LinkedIn described the move as part of “organizational changes” aimed at positioning the company for “future success.”
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The layoffs arrive at a striking moment for the company. Microsoft’s latest earnings report showed LinkedIn revenue rising 12 per cent year-on-year, marking one of its strongest growth phases in recent years.
‘We need to reinvent how we work’
In an internal memo sent to employees, LinkedIn CEO Daniel Shapero said the company needed to operate with “agile teams” and sharper priorities while investing more heavily in infrastructure and long-term growth areas.
“Economic opportunity is one of the societal issues of our time, and LinkedIn has been and will continue to be the platform that professionals and companies turn to as they navigate the changing world of work,” Shapero wrote in the email accessed by Business Insider.
“We need to reinvent how we work, with agile teams focused on our highest priorities,” he added.
LinkedIn/ Daniel Shapero The memo also revealed that LinkedIn plans to reduce spending on marketing campaigns, customer events, vendor contracts and underutilised office spaces as part of the restructuring effort. Employees affected by the layoffs reportedly received calendar invites for notification meetings shortly after the email was circulated internally.
AI questions surround latest tech layoffs
Although there is no direct mention of LinkedIn linking the layoffs with artificial intelligence, the move occurs when many big tech companies are restructuring their operations in line with AI technologies and automation.
Reuters reveals that according to a source familiar with the development, the company has not cited AI automation as a cause for the job losses. Nevertheless, an internal memo by LinkedIn’s chief marketing and strategy officer Jessica Jensen has mentioned that the company was focusing on developing AI enabled tools and workflows which would make them go "further, faster."
These moves reflect a similar trend prevalent in other tech companies in Silicon Valley. Cisco Systems, Coinbase and Block Inc., among others, have all made layoffs announcements but have continued their investments in AI and automation technologies.
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The company in question has itself recently introduced many products linked with artificial intelligence, like recruiting tools, premium subscriptions, and AI chatbot training marketplace. The irony has not escaped internet users who noted how a job-oriented platform lays off workers while creating AI-based products for workplaces.
Revenue strong, but restructuring continues
Although layoffs are happening, LinkedIn is one of the fastest-growing units at Microsoft Corporation. LinkedIn is still making money by using recruiting software, advertising, paid versions, and LinkedIn Learning.
Nonetheless, the company seems to be working to achieve operational efficiency and to allocate its funds to infrastructural development and futuristic products. In essence, to employees and observers of the tech world, this most recent layoff emphasizes that earnings do not equal job security anymore, especially in an era dominated by AI.
