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 reported a significant surge in profits for the three months ending September, reaching nearly $36.6 billion, just one day after announcing a massive workforce reduction of over 60,000 employees. The tech giant attributed the financial boost to its heavy investments in artificial intelligence (AI) and the burgeoning cloud computing division.
The company's CEO, Satya Nadella, emphasized that AI has driven greater adoption and practical applications across various industries. In response to the recent layoffs, Microsoft is offering voluntary buyouts to eligible workers in Canada, India, the UK, and the US, providing financial assistance and career guidance. Despite the workforce cuts, Microsoft's shares experienced a 2.9% rise in after-hours trading, reflecting investor optimism about the company's AI-focused strategy.
However, the news of Microsoft's strong earnings contrasted sharply with Alphabet's disappointing financial results, with the latter's shares plummeting by 9.75% following a 25% decline in net profit and continued AI spending commitments.
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