Microsoft-owned networking platform LinkedIn is reportedly preparing to announce layoffs, with a Reuters report claiming that the ratio may go as high as 5% as the Daniel Shapero-led firm reorganises its core teams and focuses employees on areas where its business is growing.
LinkedIn’s current headcount is more than 17,500, and the job cuts come despite the networking giant witnessing a 12% profit rise in Q1 2026. As per Business Insider, the affected roles include those in the Microsoft-owned company’s Global Business Organisation, marketing, engineering, and product teams. The company will also reportedly “scale back investments” in areas including marketing campaigns, vendor spend, customer events, and underutilised office space.
LinkedIn is also closing its office in Graz, Austria, as part of the cost-cutting. Its parent, Microsoft, has also been cutting costs lately as it plans significant spending, including USD 190 billion in capital expenditures in 2026, primarily related to its AI infrastructure buildout.
While the sources inside LinkedIn cited by Reuters didn’t attribute the AI factor behind the layoffs, the news comes at a time when AI-fuelled disruption has created a sense of career instability among software industry professionals.
Technology companies are increasingly reshaping their operations around AI. Jack Dorsey’s Block in February announced the elimination of nearly half its workforce, while Cloudflare recently unveiled a roughly 20% cut. Mark Zuckerberg-led Meta Platforms was reportedly targeting a May 20 layoff.
Layoffs.FYI, a layoff tracker for tech workers has tallied cuts at over 103,000 so far in 2026. The ratio is approaching the more than 124,000 reductions that the digital portal counted for the whole of 2024.
While some AI leaders have warned of job displacement, another section of the tech industry sees the innovation altering work rather than erasing it. Many Silicon Valley software developers are now using AI to generate code.