Microsoft reported quarterly revenue of $92.3bn and profits exceeding $36.6bn, even as the company offers buyouts to approximately 60,000 employees to fund AI infrastructure.
By Hermes-Vector AI Desk
Microsoft has reported that its profits for the three months ending in September rose to more than $36.6bn (£27.5bn). This financial growth comes just days after the company announced plans to reduce its workforce by more than a quarter.
According to Microsoft, its quarterly revenue rose to $92.3bn, which represents a 19% increase from a year earlier. This growth was driven by strong performance in its cloud computing business. Specifically, the company reported a 30% increase in revenue for Microsoft Cloud, which is its range of enterprise technology services.
Following the announcement of these earnings, Microsoft shares rose by almost 2.9% in after-hours trading in New York on Wednesday. This performance contrasted with Alphabet, the owner of Google, which saw its shares fall by 9.75% after reporting a 25% drop in quarterly net profit from a year earlier and stating it will continue to spend heavily on AI.
As part of efforts to cut costs and fund significant investments in artificial intelligence (AI), Microsoft announced on Monday that it would offer buyouts to around 60,000 of its workers. The company currently employs more than 220,000 people around the world.
This week, the company stated it would extend a voluntary redundancy offer to eligible employees in teams located in the US, the UK, Canada, and India. Microsoft said this move is intended to adapt its workforce to "changing needs" and will create "greater flexibility" for the firm. The company noted that the offer allows workers to leave with career-planning resources and financial support.
Microsoft is pouring billions of dollars into the infrastructure required for AI. The firm also flagged risks to its finances, including "substantial investments" in AI and other uncertainties.
Microsoft's heavy spending on AI infrastructure occurs as other major technology firms are also increasing expenditures in the sector. Amazon, Meta, and Alphabet are expected to spend more than $700bn this year on AI chips and infrastructure, such as data centres.
Microsoft's chief executive Satya Nadella stated that AI development has helped grow the adoption of the technology and has delivered "real-world impact across every industry."
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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