Microsoft has announced plans to cut approximately 6,000 roles, or 3% of its global workforce, as part of an effort to “reduce management layers” and improve efficiency. This restructuring will impact LinkedIn, although the exact number of jobs to be cut at the professional networking platform has not been disclosed. The decision comes despite Microsoft reporting better-than-expected quarterly earnings of $25.8 billion, with LinkedIn seeing a 7% year-over-year revenue increase. The move is part of a broader effort to streamline operations and reduce costs, potentially allowing for greater investment in other areas. This is not Microsoft’s first round of job cuts; in January, the company eliminated several roles as part of performance-based changes. LinkedIn itself cut 200 jobs late last year. The latest restructuring is likely linked to Microsoft’s significant investments in AI, particularly its partnership with OpenAI, the developer of ChatGPT. By reducing staff, Microsoft may be positioning itself to increase AI usage internally and expand its user-facing AI tools. The reduction in roles could also be related to LinkedIn’s scaling back of its Chinese operations, potentially reducing the need for oversight. It’s worth noting that Microsoft is reportedly revising its partnership terms with OpenAI to potentially allow OpenAI to launch an IPO in the future. While the full scope of Microsoft’s plans remains unclear, the changes are likely to have ongoing impacts on LinkedIn’s operations.
