LinkedIn cuts 5% workforce and scales back investments amid restructuring

LinkedIn, the Microsoft-owned professional networking platform, is restructuring its workforce by laying off 5% of its employees. The decision is said to affect nearly 900 employees in Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC) regions. According to an internal memo shared by LinkedIn CEO Daniel Shapero, the layoffs have affected teams across engineering and marketing. 

Shapero highlighted that LinkedIn will go through major operational changes as it restructures its focus toward its “highest priorities” and scales back investments in certain areas to improve efficiency and long-term growth. Now, LinkedIn plans to “reinvent” how it works with “agile teams.”

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LinkedIn reportedly has 17,500 employees globally, and the 5% reduction could impact nearly 900 employees across various teams and regions. Alongside layoffs, Shapero also highlighted that LinkedIn is scaling back on its spending and investments in areas across marketing campaigns, vendor spend, customer events, and underutilised office space. 

“We can focus teams on priorities that have the broadest impact with the highest ROI,” he added. Shapero also acknowledged the contributions of employees affected by the layoffs, saying that “You have helped build LinkedIn's culture and platform into what it is today, and I hope you are proud of the lasting impact your work will continue to have on our members, customers, and colleagues.”

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LinkedIn joins the tech layoff drive after some of the biggest tech companies, including Amazon, Meta, Microsoft, Oracle, and others, announced layoffs this year. Previously, Microsoft offered temporary exit to its employees, showcasing how major tech firms are increasingly restructuring operations and reallocating resources. In addition, Cisco on May 13 also announced to cut 4,000 jobs as it restructured plans to expand the company's AI efforts.