Updated
Updated · Simply Wall St · May 22
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.

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