LinkedIn cuts five percent of workforce in strategic restructuring
The professional networking platform is closing its Graz office and scaling back marketing spend, following voluntary buyout offers from Microsoft.
LinkedIn is reportedly laying off approximately 875 employees, representing five percent of its workforce, according to a leaked memo from new chief executive Daniel Shapero. The reductions primarily affect marketing, engineering, and product teams within the Global Business Organization, marking the latest major tech sector contraction as the industry recalibrates its operational footprint.
The restructuring involves closing an office in Graz, Austria, and scaling back investments in marketing campaigns, vendor spend, and customer events. Shapero’s memo states the company is "scaling back investments in some areas" to focus on priorities with the highest return on investment. The directive emphasises shifting resources toward infrastructure and reinventing work processes through agile teams to deliver a "step change in impact" across products and platforms.
A LinkedIn spokesperson confirmed the moves were part of "regular business planning" to position the company for future success. Shapero wrote in the internal communication that the company must operate more profitably while continuing to serve professionals navigating the changing world of work. The memo frames the cuts as necessary to meet the moment and fulfill the organisation’s long-term mission and vision.
The layoffs follow voluntary buyout offers initiated by parent company Microsoft, which reportedly started offering such packages to as much as seven percent of its workforce shortly before this announcement. This broader cost discipline at the Microsoft level coincides with strong financial performance at the subsidiary level, with recent earnings reports indicating LinkedIn’s revenue rose by 12 percent in the first three months of 2025 compared to the same period in the previous year.
While the restructuring focuses on operational efficiency, a source told Reuters that LinkedIn was not explicitly citing artificial intelligence as a reason for the layoffs. The company, which employs more than 17,500 full-time staff, is described as the latest major technology firm to announce large-scale job cuts as it adjusts to current market conditions and strategic priorities.
