LinkedIn's performance growth but layoffs of 5%... reorganized around the "growth department"

Microsoft ($MSFT) subsidiary LinkedIn is reportedly planning to lay off about 5% of its staff. Despite continued revenue growth, this move is seen as part of a restructuring effort to reorganize the organization and focus human resources on “core growth businesses.”

Reuters reported on the 14th (local time) citing anonymous sources familiar with the matter that LinkedIn is restructuring its team structure and concentrating capabilities on its continuously growing core business, leading to layoffs. Currently, LinkedIn has approximately 17,500 employees worldwide; a 5% reduction would amount to about 875 layoffs.

However, it is reported that this round of layoffs is not directly caused by artificial intelligence (AI) or automation. A LinkedIn spokesperson also told multiple media outlets, “As part of routine business planning, we have implemented organizational changes aimed at adjusting the company’s layout in the most future-proof way.” The specific departments involved and the timeline for completing layoffs have not been disclosed.

It is noteworthy that LinkedIn’s business performance itself is not poor. According to Microsoft’s securities disclosures, LinkedIn, which provides recruiting tools and paid subscription services, saw a 12% year-over-year revenue increase in the most recent quarter. Since 2026, the growth rate has accelerated further. While poor performance is often cited as a reason for large-scale layoffs, analysts believe this case is more akin to a “large tech company-style restructuring” where revenue growth and structural adjustments occur simultaneously.

This move also aligns with Microsoft’s overall layoffs trend. It is reported that Microsoft planned to cut about 9,000 jobs last year, accounting for roughly 4% of its total workforce. Although LinkedIn operates as an independent brand, this means it cannot escape the cost control and business redeployment tone at the parent company level.

Looking across the industry, the situation is even more apparent. Statistics show that large tech companies have laid off over 100k employees so far. Reports indicate that Meta Platforms has cut or is cutting about 20% of its global staff, while Google and Amazon are also undergoing large-scale personnel reductions during their business restructuring processes.

In the market, this trend of layoffs is repeatedly explained as a result of AI replacing jobs. However, some economists and labor experts point out that companies may be exaggerating the actual role of AI. Forbes recently reported that many layoffs may be unrelated to technological substitution and more connected to economic slowdown pressures, post-pandemic organizational slimming, and shareholder demands for profitability. In this context, AI might be used as an easy-to-justify “public reason” for restructuring.

Ultimately, the dominant view regarding LinkedIn’s layoffs is that they are an extension of profit management and organizational efficiency improvements rather than purely technological substitution. Given that even in cases of improved performance, large tech companies continue to cut staff, the market is expected to focus on the scenario of “selective growth” alongside cost-cutting.

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