LinkedIn plans fresh layoffs as tech companies continue restructuring amid AI shift

LinkedIn is preparing to announce a fresh round of layoffs on Wednesday as restructuring pressures continue to ripple across the global technology industry, according to a Reuters report citing people familiar with the matter.

The Microsoft-owned professional networking platform is expected to cut around 5% of its workforce as part of an internal reorganisation aimed at reallocating resources toward faster-growing business areas and improving operational efficiency, one of the sources told Reuters on condition of anonymity.

LinkedIn currently employs more than 17,500 people globally, according to information available on the company’s website. However, the company has not publicly disclosed which departments or geographies are likely to be impacted by the planned workforce reduction.

The development comes even as LinkedIn has been posting stronger business performance in recent quarters. Microsoft’s latest regulatory filings showed LinkedIn’s revenue rose 12% year-on-year in the most recent quarter, indicating an acceleration in growth momentum during 2026.

According to Reuters, one of the sources clarified that the layoffs are not directly linked to artificial intelligence replacing jobs inside LinkedIn. Still, the move comes at a time when technology companies worldwide are aggressively restructuring businesses around AI adoption, automation and changing investment priorities.

The broader technology sector has witnessed a renewed wave of job cuts this year despite improving market conditions and a recovery in tech valuations. Companies are increasingly prioritising spending on AI infrastructure, automation tools and data centre expansion while simultaneously attempting to control operating costs.

Several major technology firms have announced large-scale layoffs in recent months. Payments company , founded by Jack Dorsey, said earlier this year that it planned to reduce nearly half of its workforce. Meanwhile, cybersecurity and cloud services company recently disclosed plans to cut roughly 20% of its staff. Reports have also indicated that has been preparing for additional workforce reductions as part of ongoing restructuring efforts.

The rapid rise of AI technologies has intensified concerns around the future of employment across the sector. While some executives and analysts warn that automation and generative AI could displace large numbers of workers over time, others argue that AI is primarily reshaping workflows rather than eliminating jobs outright.

In software development, for example, many engineers now routinely use AI-powered coding assistants to accelerate programming tasks, debug software and automate repetitive processes. This shift is changing the nature of work across technology companies, even if it is not yet directly replacing entire teams.

According to data compiled by Layoffs.fyi, more than 103,000 technology workers globally have already been affected by layoffs so far this year. That figure is rapidly approaching the total number of tech layoffs recorded during all of 2025, when more than 124,000 jobs were cut across the sector.

The latest layoffs at LinkedIn underscore how even profitable and growing technology businesses continue to recalibrate operations amid shifting industry priorities, intensifying AI competition and mounting pressure to improve efficiency.