LinkedIn is reportedly planning to lay off 5% of its workforce, reflecting broader restructuring trends across the technology industry as companies focus on AI investments and operational efficiency. LinkedIn employs more than 17,500 full-time workers globally, according to the company's website.
According to Reuters, the layoff is part of LinkedIn’s strategic shift toward streamlining workflow across departments. The Microsoft-owned social network plans to cut about 5% of its headcount. According to the reports, this reorganization will focus personnel on areas where its business is growing.
The job cuts are planned despite strong financial performance. In January, LinkedIn reported crossing $5 billion in quarterly revenue for the first time, and last month said its annual revenue grew 12% year-over-year. Microsoft acquired the company a decade ago for $26.2 billion.
The cuts come as LinkedIn's revenue, which sells recruiting tools and subscriptions, rose 12% in the last quarter from a year earlier, according to Microsoft's securities filings. The layoff rationale was not for artificial intelligence to replace jobs at LinkedIn, Reuters reported.
“As part of our regular business planning, we’ve implemented organizational changes to best position ourselves for future success,” a company spokesperson said.
Technology companies are increasingly reshaping their operations around AI. Jack Dorsey's Block in February announced plans to eliminate nearly half of its workforce. Cloudflare announced a roughly 20% cut. Meta Platforms was targeting a May 20 layoff, Reuters reported.
Microsoft reduced its workforce by 6,000 employees, roughly 3% of its global workforce, about a year ago, then trimmed an additional 9,000 positions last July. It recently offered voluntary retirement to thousands of employees for the first time in its 51-year history. The company is targeting workers whose age plus years of service total 70 or more and has flattened management layers while overhauling its compensation structure.
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While some AI leaders have warned of job displacement, other industry executives say technology is altering work rather than erasing it. Many Silicon Valley software developers now use AI to generate code for them. Layoffs.fyi, a layoff tracker for tech workers has tallied job cuts at more than 103,000 so far this year.