San Francisco, May 13, 2026, 08:05 PDT
LinkedIn plans to lay off about 5% of its workforce, which would mean close to 875 positions out of the Microsoft-owned company’s more than 17,500 full-timers, according to two people with direct knowledge of the situation who spoke to Reuters. One of them added that the move isn’t being driven by artificial intelligence replacing jobs at LinkedIn.
That timing is striking. Microsoft reported a 12% jump in LinkedIn revenue for its fiscal third quarter, which ended March 31. The Productivity and Business Processes unit, where LinkedIn sits, posted a 17% gain to $35.0 billion.
LinkedIn is ramping up its AI-driven hiring efforts. Back in late April, the company reported its “agentic hiring” tools—these are AI products designed to boost recruiter efficiency and sharpen candidate matching—have crossed a $450 million annual revenue run rate. That figure, according to LinkedIn, points to yearly sales topping $450 million if the current momentum holds. LinkedIn News
LinkedIn is set to cut jobs across engineering, product, and marketing, CEO Daniel Shapero wrote in a memo to staff on Wednesday, according to Bloomberg. Shapero told employees the company has to boost value for users and focus on improving profitability, Bloomberg reported.
Shapero just stepped into the CEO seat. On April 22, LinkedIn announced his promotion, putting him under Ryan Roslansky, now executive vice president of LinkedIn and Microsoft Office. LinkedIn also pegged annual revenue at more than $19 billion, with membership topping 1.3 billion.
LinkedIn is making the shift as it angles for a bigger role in a labor market upended by AI. Back in April, Roslansky put it bluntly: “AI is going to transform how people work and grow in their careers faster than most people expect.” Reuters
Meta isn’t the only player facing payroll tensions as it pushes forward on AI. According to Reuters, staffers handed out protest flyers Tuesday, targeting mouse-tracking tech. The move lands less than a week before the Facebook parent is due to cut 10% of its workforce.
Still, LinkedIn’s situation isn’t a textbook case of AI simply replacing jobs, at least based on what’s public so far. Reuters noted it was unclear which teams actually faced layoffs. Bloomberg, for its part, referenced a memo that included product and engineering—and possibly more. If those groups take a hit, rolling out improvements to the hiring and media features that LinkedIn touts for growth could get trickier.
Microsoft stock slipped to $402.34 early Wednesday, off $5.43 since the prior close. Market cap hovered around $3.0 trillion for the tech giant.
LinkedIn’s latest move spells it out: expanding revenue streams won’t spare the company from trimming staff. The shakeup hits right at the heart of its business—recruitment tools, ads, subscriptions—the same products that draw in employers and job hunters.
