Microsoft-owned LinkedIn is planning to cut around 5% of its global workforce, according to a Reuters report citing two people familiar with the matter, marking the latest round of layoffs across the technology sector in 2026.
The report said employees were expected to be informed about the cuts on Wednesday. The layoffs are part of a broader organisational reshuffle aimed at concentrating resources on areas where LinkedIn sees stronger business growth.
Owned by Microsoft, LinkedIn employs more than 17,500 full-time workers globally, according to information available on the company’s website. Reuters said it could not independently determine which teams would be affected.
Restructuring linked to business priorities
According to Reuters, the restructuring is intended to realign teams rather than replace workers with artificial intelligence systems.
One source told the news agency the layoffs were not being driven by AI replacing jobs, despite growing anxiety across the technology industry over automation and workforce disruption.
The move comes even as LinkedIn’s business continues to expand. Microsoft’s latest securities filings showed that LinkedIn’s revenue rose 12% year-on-year in the most recent quarter, signalling faster growth momentum in 2026.
LinkedIn generates revenue primarily through:
- Recruitment and hiring solutions
- Premium subscriptions
- Advertising products
- Enterprise sales and learning services
The latest workforce reduction reflects a wider trend in Silicon Valley, where companies are reorganising operations to prioritise AI investments, efficiency measures and high-growth business segments.
Tech sector layoffs continue to rise
Technology firms have announced thousands of layoffs this year despite improving market conditions and renewed investor enthusiasm around artificial intelligence.
Reuters noted that several companies have recently unveiled significant workforce reductions, including:
- Block, the fintech company led by Jack Dorsey, which said in February it planned to eliminate nearly half of its workforce
- Cloudflare, which last week announced plans to reduce staff by roughly 20%
- Meta Platforms, which Reuters previously reported was targeting another round of layoffs around May 20
Data from layoff tracker Layoffs.fyi indicates that more than 103,000 technology workers have already been affected by job cuts in 2026. That figure is nearing the more than 124,000 layoffs recorded across the whole of 2025, according to the platform.
AI transformation reshapes workforce strategies
The technology sector’s aggressive push into AI continues to influence hiring and workforce planning decisions.
While some executives and researchers have warned that AI could displace certain categories of jobs, others argue the technology is changing how employees work rather than directly replacing them.
Many software developers across Silicon Valley now use AI-powered coding tools to automate parts of programming and workflow management. Companies are increasingly reallocating resources toward AI engineering, infrastructure and product development while reducing spending in slower-growth areas.
The planned LinkedIn layoffs underline how even profitable technology businesses are reassessing workforce structures as competition intensifies and AI adoption accelerates across the sector.