Read the internal memo from LinkedIn's CEO on layoffs and 'scaling back investments'

LinkedIn is laying off employees and scaling back other investments, according to an internal memo, with affected workers expected to have been notified this morning. The move signals cost-cutting and a more cautious operating stance, which is negative for company fundamentals and near-term sentiment. The news is material for LinkedIn/parent Microsoft but is unlikely to have broad market impact.

Analysis

LinkedIn is laying off employees and scaling back other investments, according to an internal memo, with affected workers expected to have been notified this morning. The move signals cost-cutting and a more cautious operating stance, which is negative for company fundamentals and near-term sentiment. The news is material for LinkedIn/parent Microsoft but is unlikely to have broad market impact.