Exclusive-LinkedIn planning to lay off 5% of staff in latest tech-sector cuts, source says - Finance news and analysis from Global Banking & Finance Review
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Exclusive-LinkedIn planning to lay off 5% of staff in latest tech-sector cuts, source says

Published by Global Banking & Finance Review

Posted on May 13, 2026

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· Last updated: May 13, 2026

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Exclusive-LinkedIn planning to lay off 5% of staff in latest tech-sector cuts, source says

LinkedIn Layoffs Amid Broader Tech Industry Reductions

By Jeffrey Dastin and Jeff Horwitz

Details of the Planned Layoffs

SAN FRANCISCO, May 13 (Reuters) - LinkedIn planned to inform staff of layoffs on Wednesday, two people familiar with the matter told Reuters, in a widening of technology sector cuts this year.

The Microsoft-owned social network plans to cut about 5% of its headcount as it reorganizes teams and focuses personnel on areas where its business is growing, said one of the people, on condition of anonymity.

Scope and Impact

LinkedIn employs more than 17,500 full-time workers globally, its website says. Reuters was unable to determine the teams affected.

The cuts come as revenue at LinkedIn, which sells recruiting tools and subscriptions, rose 12% in the just-ended quarter from a year prior, in an acceleration of growth in 2026, according to Microsoft's securities filings.

Drivers Behind the Layoffs

Artificial Intelligence and Organizational Changes

The layoff rationale was not for artificial intelligence to replace jobs at LinkedIn, one of the people told Reuters. The specter of AI-fueled disruption has nonetheless hung over software incumbents and workers generally.

AI’s Influence Across the Tech Sector

Technology companies are increasingly reshaping their operations around AI. Jack Dorsey's Block in February announced it planned to eliminate nearly half its workforce, while Cloudflare last week unveiled a roughly 20% cut. Meta Platforms was targeting a May 20 layoff, Reuters earlier reported.

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, for instance.

Industry-Wide Layoff Trends

Layoffs.fyi, a layoff tracker for tech workers, has tallied cuts at more than 103,000 so far this year. That's approaching the more than 124,000 reductions that Layoffs.fyi counted for the whole of 2025, according to the site.

(Reporting by Jeffrey Dastin and Jeff Horwitz in San Francisco; Editing by Chizu Nomiyama, Rod Nickel and Nick Zieminski)

Key Takeaways

  • LinkedIn, owned by Microsoft, intends to lay off approximately 5% of its more than 17,500 full‑time employees globally—a sizable move amid ongoing tech sector restructuring (columncontent.com).
  • The move comes as LinkedIn’s revenue rose 12% year‑over‑year in the most recent quarter, signaling that the cuts are more about strategic reallocation than cost‑cutting from poor performance (computerworld.com).
  • According to insiders, the layoffs are not powered by AI replacing roles but reflect a refocus on growth areas—unlike many peers whose job cuts are closely linked to AI automation (computerworld.com).

References

Frequently Asked Questions

How many employees is LinkedIn planning to lay off?
LinkedIn is planning to lay off about 5% of its global staff, which totals more than 17,500 employees.
When will LinkedIn announce the layoffs?
LinkedIn is expected to announce the layoffs on Wednesday.
Which teams at LinkedIn will be affected by the layoffs?
Reuters was unable to determine which specific teams will be affected by the layoffs.
What is the reason for LinkedIn's layoffs?
The layoffs are part of a reorganization to focus employees on areas where business is growing, not due to artificial intelligence replacing jobs.
Has LinkedIn's revenue been impacted recently?
LinkedIn's revenue rose 12% in the most recent quarter, showing an acceleration in growth.

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