Markets· August 17, 2026 at 02:16 p.m.
Microsoft Cuts LinkedIn Israel R&D Team, Focuses on AI Investments
Key takeaways
- Microsoft is shutting down its Israel R&D center and laying off nearly all employees
- The move is part of Microsoft's broader capital allocation strategy to invest in AI infrastructure
- Microsoft's stock trades at a high valuation but has strong profit margins and return on equity
Microsoft Corporation, a leading American multinational technology company, has announced plans to shut down its research and development center in Israel, resulting in the layoff of nearly all its employees. The Tel Aviv center was established in 2022 after Microsoft acquired Israeli analytics startup Oribi for an estimated $80-$90 million. Despite this move, Microsoft's focus remains on increasing budget for AI infrastructure while seeking areas to cut expenses.
