Microsoft lays off 4,000 employees from LinkedIn and other divisions as part of its large-scale cuts

Microsoft is laying off 4,000 employees from LinkedIn, the professional networking service it owns, as well as other divisions, according to sources familiar with the matter.<br><br>The cuts are part of a larger restructuring effort that could ultimately result in the elimination of around 10,000 roles at the technology company, though some roles may be moved to contractors.<br><br>The move comes as the tech industry is experiencing a broad pullback in hiring, after a period of frenzied expansion during the pandemic. Many tech companies are looking to reduce their workforces and contain costs in response to more challenging macroeconomic conditions.<br><br>Microsoft is among a handful of big tech companies to announce layoffs in recent months, alongside Amazon, Meta and Salesforce. Yesterday, Google’s parent Alphabet said it would cut 12,000 jobs worldwide, or around 6 per cent of its workforce.<br><br>Microsoft employees were informed of the cuts in a series of meetings that began late Tuesday and continued into Wednesday, according to the sources.<br><br>Microsoft declined to comment on the specific number of layoffs, which was first reported by Bloomberg. “We will continue to invest in strategic areas for the company while ensuring we manage our cost structure in a way that positions Microsoft for long-term success,” it said in a statement.<br><br>As part of the cuts, Microsoft said it is simplifying its engineering divisions. A source said that some laid-off employees may be reassigned to different roles within the company.<br><br>The company said it would provide severance to employees who lose their jobs, including “above-market severance pay, career transition support from LinkedIn’s outplacement program, and educational resources, including LinkedIn Learning and Microsoft Academic and Professional certifications”.<br><br>LinkedIn was founded in 2002 and acquired by Microsoft in 2016 for $26.2bn. It has around 900m users.<br><br>Microsoft’s chief executive Satya Nadella said in a memo to employees: “While we continue to manage costs across each of our business areas and individual teams, segments of our business like Microsoft Cloud, and in particular Azure, continue to grow at scale and at a pace that is consistent with the opportunity provided by customers.”<br><br>“We will continue to invest to drive that growth while helping customers optimize their digital spend, making them more successful and ultimately providing better returns to our shareholders.”<br><br>He added: “We recognize how hard these changes can be for each person impacted. The senior leadership team and I are committed to supporting them through these transitions.”