Major US tech giants Meta and LinkedIn are implementing significant workforce restructuring, with Meta cutting 8,000 jobs and reassigning 7,000 to AI roles, while LinkedIn slashes over 600 positions, as both companies intensify their focus on artificial intelligence.
Key Points
- Meta is undertaking a major restructuring, planning to lay off approximately 8,000 employees while reassigning around 7,000 into new AI-focused roles.
- The restructuring at Meta involves reorganising employees into four new AI-focused organisations, reflecting a significant increase in AI investments.
- LinkedIn has announced permanent layoffs affecting more than 600 employees across its Mountain View, San Francisco, Sunnyvale, and Carpinteria offices.
- LinkedIn CEO Daniel Shapero stated the job cuts are part of a strategy to 'reinvent how we work' and shift investments towards infrastructure and long-term priorities.
- Despite aggressive AI investments, Meta's stock has declined, and analysts have expressed concerns about the company's path to returns compared to rivals.
Major technology companies in the United States are continuing workforce restructuring amid the growing focus on artificial intelligence (AI), with Meta and LinkedIn announcing significant job cuts and organisational changes.
Meta's AI-Driven Restructuring
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 simultaneously shifting around 7,000 employees into AI-focused roles.
The report stated that Meta will reorganise these employees into four new AI-focused organisations as part of its broader strategy to increase investments in artificial intelligence.
As part of the restructuring, around 8,000 employees are expected to be laid off, while nearly 6,000 open positions will remain unfilled.
Meta had earlier detailed the restructuring in an internal memo in April. Janelle Gale, Meta's head of people, had 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.
Affected employees are expected to receive details regarding the layoffs and restructuring through emails.
The move reflects Meta's increasing focus on AI-driven growth across its businesses, including Facebook, Instagram and WhatsApp.
Financial Implications and Analyst Concerns
During the company's first-quarter 2026 earnings call, Meta Chief Financial Officer Susan Li said the company is focusing heavily on using AI tools to improve productivity and engineering output.
Meta has also increased its 2026 capital expenditure guidance to $125 billion-$145 billion from $115 billion-$135 billion, citing higher component pricing and additional data centre costs linked to AI expansion.
Despite aggressive AI investments, investor concerns remain.
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, stating that the company faces a "more challenging path to returns" compared to rivals in the AI race.
Analysts at Bank of America also questioned whether the scale of Meta's AI investments would remain sustainable in the long term.
Meta employed 77,986 workers as of the end of March 2026, compared with 86,482 employees in 2022.
LinkedIn's Workforce Reductions
Meanwhile, according to another 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, which 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.
The layoffs follow an internal memo from LinkedIn CEO Daniel Shapero, who said the company needed to "reinvent how we work" and shift investments toward infrastructure and long-term priorities.
The memo added that the company would reduce roles across marketing, engineering, product and other business functions.
LinkedIn is also reportedly reducing spending on marketing campaigns, vendor expenses, customer events and office space.
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 buyout programme is aimed at employees eligible for early retirement based on age and years of service.
