Microsoft profits soar days after announcing thousands of layoffs — SkimNews
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- Microsoft said profit for the three months to the end of September jumped to more than $36.6bn (£27.5bn).
- Microsoft reported quarterly revenue of $92.3bn, up 19% from a year earlier, driven by strong growth in cloud computing.
- Microsoft Cloud revenue rose 30%, which Microsoft said lifted its earnings.
- Microsoft said on Monday it would offer buyouts to around 60,000 workers to cut costs as it invests billions in AI, with plans to reduce its workforce by more than a quarter.
- Microsoft extended its voluntary redundancy offer to eligible employees across Canada, India, the UK and the US; the company currently employs more than 220,000 people worldwide.
- Microsoft shares rose almost 2.9% in after-hours trading in New York on Wednesday following the results.
- Microsoft flagged “substantial investments” in AI among uncertainties that could affect its finances, while chief executive Satya Nadella said the technology had delivered “real-world impact across every industry.”
Why it matters: Microsoft paired 19% revenue growth and a 30% jump in Microsoft Cloud revenue with roughly 60,000 voluntary buyouts and a planned workforce cut exceeding one quarter. Workers receive financial support and career-planning resources, while Microsoft’s nearly 2.9% after-hours share gain followed the stronger-than-expected results.
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