Microsoft profits soar days after announcing thousands of layoffs
The week, the Windows developer said it would offer buyouts to 60,000 workers as it looks to curb costs.
Microsoft reported a significant surge in profits for the quarter ending September, with earnings reaching over $36.6 billion, just a few days after announcing extensive layoffs, affecting more than 60,000 workers. The tech giant's decision to offer buyouts aimed at reducing costs as it pours billions into AI development. Despite the workforce reduction, Microsoft's shares saw a rise of nearly 2.9% in after-hours trading in New York.
The tech sector's performance remains a focal point for investors, with major players like Amazon, Meta, and Alphabet investing billions in AI chips and data centers. Microsoft's Q2 revenue grew by 19% to $92.3 billion, primarily due to the booming cloud computing sector. While the company acknowledged the risks involved in its AI investments, CEO Satya Nadella highlighted the technology's real-world impact across various industries.
Microsoft has also extended a voluntary redundancy offer to eligible employees in several countries, aiming to adapt its workforce to changing needs and providing financial support and career planning resources. The company currently employs over 220,000 people globally. In contrast, Alphabet, the parent company of Google, saw its shares drop by 9.75% after reporting a 25% decline in quarterly net profit and announcing continued heavy investments in AI.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
