Microsoft profits soar days after announcing thousands of layoffs
Microsoft reported a significant profit increase of $36.6 billion, driven by strong cloud computing growth, shortly after announcing plans to offer buyouts to 60,000 employees. The company continues to invest heavily in AI infrastructure despite ongoing questions regarding the sustainability of such high spending.
Why it matters
The contrast between massive layoffs and record profits highlights the aggressive shift in tech industry priorities toward AI development.
Share Save Add as preferred on Google Osmond Chia Business reporter Getty Images Microsoft boss Satya Nadella 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 its workforce by more than a quarter.
On Monday, the Windows developer said it would offer buyouts to around 60,000 of its workers to cut costs as it pours billions of dollars into artificial intelligence (AI).
Like many other major tech firms, Microsoft is investing heavily in the infrastructure that powers AI even as questions remain over whether such huge spending will pay off.
Microsoft shares rose by almost 2.9% in after hours trading in New York on Wednesday.
The recent financial results of tech companies have been closely watched by investors as they gauge whether the heavy spending on AI is sustainable.
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