'Not easy trade-off': LinkedIn Cuts 600 Jobs, Meta Plans ‘Major’ Overhaul As AI Shadow Expands

Major technology companies in the United States are continuing large-scale workforce restructuring as they deepen investments in artificial intelligence (AI), with Meta and LinkedIn announcing significant organisational changes and job cuts.

According to a report by NBC News, Meta is planning a major restructuring exercise that includes layoffs affecting nearly 10 per cent of its workforce while shifting around 7,000 employees into AI-focused roles.

The company plans to reorganise these employees into four new AI-focused organisations as part of a broader strategy to expand its investments in artificial intelligence. Around 8,000 employees are expected to be laid off, while nearly 6,000 open positions will remain unfilled.

Meta had first outlined the restructuring plans in an internal memo circulated in April.

Meta Says Efficiency Drive Necessary for AI Expansion

Janelle Gale, Meta’s head of people, said in the memo, “We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making.”

“This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here,” she added.

Employees affected by the restructuring are expected to receive official communication through email notifications.

The restructuring reflects Meta’s growing emphasis on AI-driven growth across its major platforms, including Facebook, Instagram and WhatsApp.

During the company’s first-quarter 2026 earnings call, Meta Chief Financial Officer Susan Li said the company is increasingly relying on AI tools to improve productivity and engineering efficiency.

AI Spending Surges Despite Investor Concerns

Meta has also raised its 2026 capital expenditure guidance to between USD 125 billion and USD 145 billion, up from an earlier estimate of USD 115 billion to USD 135 billion. The increase has been attributed to higher component pricing and additional data centre expenses linked to AI expansion.

However, the company’s aggressive AI spending has triggered concerns among investors and analysts. Meta’s stock has declined nearly 9 per cent this year and has fallen almost 10 per cent since its April earnings announcement.

Analysts at JPMorgan Chase reportedly downgraded Meta shares, saying the company faces a “more challenging path to returns” compared to rivals competing in the AI race.

Analysts at Bank of America also questioned whether Meta’s current scale of AI investments would remain sustainable over the long term.

Meta employed 77,986 workers at the end of March 2026, down from 86,482 employees in 2022.

LinkedIn Also Announces Job Cuts

Meanwhile, according to a report by the New York Post, LinkedIn has announced layoffs affecting more than 600 employees.

The report cited a Worker Adjustment and Retraining Notification (WARN) filing showing that 606 LinkedIn employees were informed of permanent layoffs that will take effect on July 13.

The largest number of layoffs — around 352 employees — came from LinkedIn’s Mountain View office in California, along with 66 remote employees based in the same city.

Another 108 employees were laid off in San Francisco, 59 in Sunnyvale and 21 in Carpinteria.

LinkedIn Focuses on “Long-Term Priorities”

LinkedIn CEO Daniel Shapero said in an internal memo that the company needed to “reinvent how we work” and redirect investments toward infrastructure and long-term priorities.

The memo stated that LinkedIn would reduce roles across marketing, engineering, product and several other business divisions.

The company is also cutting spending on marketing campaigns, vendor expenses, customer events and office space as part of its cost-control measures.

The layoffs come despite LinkedIn recently reporting 12 per cent year-on-year revenue growth in its third-quarter earnings.

LinkedIn’s parent company, Microsoft, has also announced buyout offers that could affect nearly 7 per cent of its 125,000-person workforce, or around 8,750 employees.

The programme targets employees eligible for early retirement based on age and years of service.

What the Layoffs Signal for the Tech Industry

The latest layoffs indicate that major technology companies are continuing to prioritise AI infrastructure and automation, even as they reduce headcount in traditional business functions.

Industry analysts believe the shift reflects a broader transformation underway across Silicon Valley, where companies are reallocating capital and talent toward AI development, cloud infrastructure and data centre expansion in an increasingly competitive market.

(With inputs from ANI)