Microsoft profits soar days after announcing thousands of layoffs
Technology giant Microsoft says its profits for the three months to the end of September jumped to more than $36.6bn (£27.5bn), just days after announcing plans to cut more than a quarter of its workforce.
Microsoft's profits surged to over $36.6 billion in the three months ending September, marking a significant increase despite announcing plans to lay off more than 25% of its workforce. The tech giant attributed the surge to strong growth in its cloud computing business, with Microsoft Cloud revenue up by 30%. However, the company warned of substantial AI investments that could impact its finances.
Microsoft CEO Satya Nadella highlighted AI's role in boosting adoption and delivering tangible results across various industries. In response to the workforce reduction, Microsoft offered voluntary buyouts to around 60,000 employees across Canada, India, the UK, and the US, providing financial support and career planning resources.
This move aimed to adapt the workforce to changing needs and maintain flexibility within the company. With over 220,000 employees globally, Microsoft's earnings exceeded expectations, contrasting with Alphabet's disappointing results, which saw a 25% drop in quarterly net profit and continued heavy AI expenditure.
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