LinkedIn, owned by Microsoft, has begun a round of layoffs, the company’s newly appointed CEO Daniel Shapero said in an internal memo on Wednesday. According to Bloomberg, the job cuts will affect engineering, product development and marketing teams.
The company did not disclose the exact number of positions to be eliminated. LinkedIn currently employs about 17,500 people and reported $17.8 billion in revenue for the fiscal year that ended in May 2025.
A company spokesperson said the organizational changes are part of routine business planning intended to put LinkedIn in the best position for future success. The move fits within Microsoft’s broader cost-reduction strategy.
Microsoft has been reshaping its workforce in recent years: the parent company recently offered a voluntary exit program to roughly seven percent of its U.S. employees. At the same time, Microsoft is investing heavily in artificial intelligence-related infrastructure and data centers, expenditures that put pressure on profit margins.
Background and leadership
Microsoft acquired LinkedIn in 2016; the professional network largely operates independently within Microsoft. The division is overseen by Executive Vice President Ryan Roslansky, who also has responsibility for Microsoft’s office software suites.
Daniel Shapero, who was part of LinkedIn’s leadership before the acquisition, took over as CEO last month. The internal memo he sent is the basis for the public reporting of the layoffs.
Why it matters
The layoffs and organizational adjustments reflect the tension between cost efficiency and the need to fund large AI and data center investments. As a major revenue-generating division, LinkedIn’s restructuring is a notable element of Microsoft’s effort to balance investment in growth areas with profitability targets.
The company has not provided further details or a timeline for the reductions.
