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LinkedIn plans layoffs affecting 5% of staff
LinkedIn, owned by Microsoft, is preparing to announce layoffs that will cut about 5% of its workforce.
The company is reorganizing teams and shifting staff to faster-growing parts of the business.
LinkedIn says it has more than 17,500 full-time employees globally, which suggests the cuts could affect about 875 roles.
The move comes even as LinkedIn’s revenue rose 12% year on year in the latest quarter, based on Microsoft’s filings.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
LinkedIn’s growth is solid, but trails its parent segment
- LinkedIn revenue rose 12%, which looks healthy on its own. Microsoft’s Productivity and Business Processes segment, which includes LinkedIn, grew 17% 1.
- The staff cuts also fit a wider pattern at Microsoft. Total headcount fell from a year earlier as the company pushed to run leaner 2.
Reorganization matches Microsoft’s move toward seat-plus-consumption AI pricing
- Microsoft is moving from standard per-seat software licensing to “per-user and usage” pricing as AI agent use climbs 3.
- LinkedIn’s push into “faster-growing parts” may include AI tools in LinkedIn Talent Solutions, its recruiting and hiring products for employers. Microsoft said its “agentic products in LinkedIn Talent Solutions” topped a US$450 million annualized revenue run rate 3.
- The move channels more resources into AI products, where heavier use and consumption pricing can lift revenue beyond growth tied to employee counts 3.
