LinkedIn to lay off 5% of workforce as tech job cuts spread across Silicon Valley

Another wave of tech layoffs is hitting Silicon Valley. This time, it’s coming from one of the internet’s biggest professional networks. LinkedIn plans to inform employees on Wednesday that it will cut about 5% of its workforce, according to two people familiar with the matter who spoke to Reuters. The move marks another sign that the tech industry’s cost-cutting cycle is far from over, even at companies still posting healthy revenue growth.

The Microsoft-owned company employs more than 17,500 people globally, according to its website. The layoffs are tied to an internal reorganization as LinkedIn shifts staff into parts of the business showing stronger growth, Reuters reported, citing one source. The person added that artificial intelligence is not directly replacing the jobs being eliminated.

Still, AI hangs over nearly every staffing decision coming out of Silicon Valley right now.

Recruiting platforms, software firms, cloud providers, and social media companies are all rethinking how work gets done as AI tools become more capable. Engineers are increasingly using AI assistants to write code, customer support teams are adopting automation, and executives are under pressure to prove they can operate more efficiently.

The timing of the cuts stands out. LinkedIn’s business has actually been growing. Revenue from the platform, which sells recruiting tools, advertising products, and premium subscriptions, climbed 12% in Microsoft’s most recent quarter. That marked an acceleration from earlier growth rates in 2026, according to Microsoft’s filings.

The disconnect between rising revenue and shrinking headcount has become a defining feature of the AI era in tech.

Companies are trimming layers of management, consolidating teams, and redirecting spending into AI infrastructure and automation projects. Investors have rewarded many of those moves, especially as Wall Street pushes tech firms to show they can increase productivity without ballooning payrolls.

LinkedIn is far from alone.

LinkedIn’s decision to cut jobs follows a broader trend across Silicon Valley. Earlier this month, Meta announced plans to lay off about 8,000 employees, or roughly 10% of its workforce, starting May 20, as the company restructures teams around its growing AI ambitions.

Jack Dorsey’s financial technology company Block announced plans earlier this year to eliminate nearly half its workforce. Cloudflare disclosed a roughly 20% reduction last week. Reuters previously reported that Meta Platforms is preparing another round of layoffs targeted for May 20.

The cuts are adding up fast.

Layoffs.fyi, which tracks job cuts across the tech sector, reports that more than 103,000 tech workers have lost their jobs so far this year. That figure is already approaching the roughly 124,000 cuts recorded during all of 2025.

For workers across Silicon Valley, the message is getting harder to ignore. AI may not be replacing entire companies overnight, but it is reshaping how those companies decide who stays, who leaves, and which jobs still matter most.