LinkedIn hit as Microsoft slashes 6,000 jobs despite $25.8B quarterly profit

Microsoft is reportedly laying off approximately 6,000 employees, or about 3% of its global workforce, as part of efforts to streamline operations and reduce layers of management. The job cuts will also impact LinkedIn, though the company has not disclosed how many roles within the professional networking platform will be affected.

The move comes despite Microsoft posting stronger-than-expected earnings for the latest quarter, reporting $25.8 billion in profit. LinkedIn also saw a 7% year-over-year increase in revenue during the same period.

The company stated the decision is not related to performance but is intended to increase efficiency and reduce operational complexity. Earlier this year, Microsoft announced additional layoffs described as performance-based, and LinkedIn previously cut around 200 roles in late 2024.

Microsoft continues to invest heavily in artificial intelligence, including its multibillion-dollar backing of OpenAI. Analysts say that the restructuring may support broader AI integration across Microsoft’s platforms, including LinkedIn, potentially leading to increased reliance on automated systems internally and in consumer-facing features.

The company is also reportedly revisiting terms of its partnership with OpenAI, which could pave the way for a potential IPO by the AI firm.

LinkedIn recently scaled back its operations in China, which may also be a factor in the reduced staffing needs.

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