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LinkedIn shuts Israel R&D center, cutting nearly all of roughly 50 staff
The Tel Aviv unit opened after Microsoft acquired analytics startup Oribi in 2022 for an estimated $80 million to $90 million, and the latest move comes as Microsoft weighs AI spending against expense cuts.
Microsoft shareholders got another signal that Big Tech is watching costs as well as funding AI investments, after LinkedIn reportedly moved to shut its Israel research and development center in Tel Aviv and lay off nearly all of the unit’s roughly 50 employees, according to Yahoo Finance.
The center, which opened in 2022 after Microsoft acquired Israeli analytics startup Oribi for an estimated $80 million to $90 million, was used to incorporate Oribi’s technology into LinkedIn Marketing Solutions.
Yahoo Finance framed the timing as less about demand and more about internal resource allocation, noting that Microsoft is also increasing its budget for AI infrastructure even as it looks for areas to cut expenses.
The article added broader context on Microsoft’s stock and valuation, saying shares trade around $485, about 12% below the 52-week high and nearly 39% above the 52-week low, while the S&P 500 was up roughly 14% year to date as of Aug. 17. It also cited valuation metrics including about 25 times forward earnings and 11 times sales.
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