Microsoft Cuts 7% of U.S. Staff as LinkedIn Eliminates 900 Roles
Updated
Updated · Simply Wall St · May 22
Microsoft Cuts 7% of U.S. Staff as LinkedIn Eliminates 900 Roles
5 articles · Updated · Simply Wall St · May 22
Microsoft is trimming its U.S. workforce through a voluntary early-retirement program affecting about 7% of employees, while LinkedIn is cutting 900 jobs in a broader realignment.
The reductions are tied to heavier spending on AI and related infrastructure, with management shifting talent and costs toward Azure, Copilot and other AI-centered products.
Microsoft is using targeted cuts rather than a broad hiring freeze, aiming to reduce labor in slower-growing or more mature operations while concentrating investment where AI and cloud demand is strongest.
For investors, the key issue is whether the reshaping can protect margins and fund high capital spending without disrupting enterprise software execution, product delivery or customer support.
Is Microsoft's AI-driven layoff of tenured staff a strategic masterstroke or a costly loss of human expertise?
As Microsoft bets $105B on AI, could its deep reliance on OpenAI become its greatest hidden risk?
With AI writing 35% of its code, is Microsoft previewing a future where human developers are obsolete?
2026 Tech Layoffs Surpass 100,000: Microsoft, LinkedIn, and the Workforce Transformation Driven by AI
Overview
In May 2026, major technology companies like Microsoft and LinkedIn made significant workforce changes as part of a broader industry shift. These changes include voluntary retirement programs, targeted layoffs, and a focus on trimming management layers. The main drivers are substantial investments in artificial intelligence and a push for cost efficiency. As Microsoft and others restructure, they anticipate ongoing headcount reductions and major financial charges. This trend reflects a wider move across the tech sector, where companies are reorganizing to position themselves for success in a dynamic, AI-driven marketplace, even as they face the challenge of supporting employees through these transitions.