As tech layoffs top 100,000 in 2026, LinkedIn's restructuring raises new questions about what growth actually means for workers
LinkedIn is laying off approximately 875 employees — around 5% of its global workforce — with affected staff in engineering, product and marketing notified Wednesday, Reuters first reported, citing two people familiar with the matter.
The cuts come despite strong financial performance. LinkedIn reported crossing $5 billion in quarterly revenue for the first time earlier this year, with annual revenue growing 12% year-over-year. CEO Daniel Shapero, who took the helm last month after serving as chief operating officer since 2021, disclosed the cuts in an internal memo. A company spokesperson told media the changes are part of "regular business planning" to "best position ourselves for future success."
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One source told Reuters the layoffs are not driven by artificial intelligence replacing roles. The company is instead reorganizing teams and redirecting personnel toward faster-growing areas of the business.
A widening wave
LinkedIn's announcement lands in the middle of a broader restructuring sweep across the technology sector. More than 103,000 tech workers have lost their jobs globally so far in 2026, approaching the total recorded for all of 2025. Layoffs in the first quarter alone reached roughly 81,700 — the highest quarterly figure since early 2023.
Meta plans to lay off 8,000 employees on May 20, representing about 10% of its workforce, with further reductions expected in the second half of the year. Cloudflare announced more than 1,100 cuts this week. Oracle has eliminated up to 30,000 positions — roughly 20% of its global workforce — targeting legacy database and on-premises support roles.
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Microsoft, which acquired LinkedIn in 2016 for $26.2 billion, has itself been reducing headcount steadily — cutting approximately 6,000 employees roughly a year ago, trimming a further 9,000 last July, and recently offering voluntary retirement buyouts to U.S. employees for the first time in its 51-year history.
The AI question
What distinguishes the 2026 cycle from earlier downturns is the context in which cuts are being made. Unlike earlier downturns driven largely by economic slowdowns, the current wave reflects a structural shift, with companies prioritizing efficiency, automation and long-term technology bets. A 2026 survey found AI adoption is slowing hiring for entry-level and generalized IT roles, while demand for AI-specialized positions continues to rise.
Many experts caution, however, that the "AI-driven efficiency" framing in layoff announcements often masks a more complex mix of cost-cutting, post-pandemic restructuring, and the need to fund massive AI infrastructure investments.
The cuts serve as a reminder that even platforms built on professional networking and talent acquisition are not immune to the pressures reshaping how companies think about headcount.
