Microsoft’s LinkedIn Reportedly Plans To Cut About 5% Headcount – Layoffs To Affect Employees Across Engineering, Product, Marketing Roles

• According to a Reuters report, the LinkedIn layoffs are not related to the adoption of artificial intelligence at the social network.
• According to its website, LinkedIn employs more than 17,500 full-time workers, meaning a 5% workforce reduction would affect roughly 875 employees.
• The move comes after LinkedIn reported a 12% year-over-year increase in third-quarter revenue, according to Microsoft’s results released last month.

Microsoft Corp.-owned (MSFT) LinkedIn is reportedly planning to cut its headcount by 5% in the latest move to trim its workforce in the technology sector.

According to a Bloomberg report citing a memo from LinkedIn CEO Daniel Shapero, the layoffs will affect employees across engineering, product, and marketing roles.

“As part of our regular business planning, we’ve implemented organizational changes to best position ourselves for future success,” a LinkedIn spokesperson stated, according to the report.

Microsoft shares were down about 1% in Wednesday morning’s trade.

Cuts Not Related To Adoption Of AI, Says Report

According to a Reuters report, the LinkedIn layoffs are not related to the adoption of artificial intelligence technology at the social network.

LinkedIn currently employs more than 17,500 full-time employees, according to its website. A 5% headcount cut would impact about 875 employees. LinkedIn has 38 offices in more than 30 cities around the world, with over 1.3 billion members worldwide using the social network.

Layoffs Amid Revenue Surge

This comes amid a 12% year-on-year surge in LinkedIn’s revenue in the third quarter (Q3), according to Microsoft’s announcement last month.

Shapero stated that LinkedIn’s new agentic hiring products crossed $450 million in annual run rate during the quarter, helping companies like Advanced Micro Devices Inc. (AMD) and Palo Alto Networks Inc. (PANW) hire more effectively.

He also stated that LinkedIn posts rose 14% YoY and paid video content on the platform soared 30% during this period.

MSFT Plans First-Ever Voluntary Buyout For US Employees

According to a CNBC report, Microsoft is said to be considering voluntary buyouts for some of its employees in the U.S.

About 7% of Microsoft’s employees in the U.S. are said to be eligible for the buyouts, in a first-ever move for the tech giant. Employees at the senior director level and below qualify for the plan if their combined age and years of service total at least 70, the report added.

How Did Retail Traders React To MSFT?

Retail sentiment on Stocktwits around Microsoft trended in the ‘bearish’ territory at the time of writing.

MSFT stock is down 16% year-to-date and 10% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 26% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 38%.

Also See: VELO Stock Headed For Best Single-Day Gains In 5 Months — CEO Touts Key Inflection Point For Velo3D In Q1

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