Microsoft's LinkedIn Initiates Staff Reductions Amid AI-Driven Industry Restructuring

Stock News05-13

In a move reflecting ongoing cost optimization within the technology sector during the AI era, the professional networking platform LinkedIn, owned by Microsoft (MSFT.US), has commenced a new round of workforce reductions. LinkedIn CEO Daniel Shapero stated in a memo to employees on Wednesday that the company requires organizational changes to generate "greater impact" for users while enhancing profitability. According to the memo, these layoffs will affect several departments, including engineering, product, and marketing roles. A LinkedIn spokesperson subsequently noted, "As part of our routine business planning, we have implemented organizational adjustments to better prepare for future development." The exact scale of the layoffs remains unclear. Based on data from LinkedIn's official website, the division currently employs approximately 17,500 people. As Microsoft continues to expand its investments in AI infrastructure development, the company has been undertaking layoffs and organizational optimizations in recent years to alleviate pressure on profit margins. Microsoft is making substantial investments in data centers and related AI infrastructure to support its artificial intelligence services. LinkedIn was acquired by Microsoft in 2016 but has largely maintained relatively independent operations. In Microsoft's previous fiscal year ending May 2025, LinkedIn generated revenue of $17.8 billion. Currently, LinkedIn's operations are overseen by Microsoft Executive Vice President Ryan Roslansky, who also leads Microsoft's Office software business. Daniel Shapero was formally appointed as LinkedIn's CEO just last month. He had served as a senior executive at the company for many years prior to Microsoft's acquisition. Recently, several major technology companies, including Microsoft, have been advancing layoffs and organizational restructuring as part of their AI transformation. The market widely perceives that, against the backdrop of significantly increased AI investments, tech firms are placing greater emphasis on operational efficiency and profit margin performance.

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