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HomeNationalMicrosoft's quarterly results saved with cloud computing MIGMG News

Microsoft’s quarterly results saved with cloud computing MIGMG News

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Microsoft said on Tuesday that sales slowed and profits fell in the final quarter of 2022 as a darkening economic outlook prompted it to lay off 10,000 workers.

The Washington, D.C.-based tech giant – which owns LinkedIn, Xbox and Windows – said total sales rose just 2 percent in the October-December period to $52.7 billion, the slowest rise in six years.

Net profit came in at $16.4 billion for the quarter, down 12 percent year over year, according to its earnings release.

The results still met, or in some segments exceeded, expectations and Microsoft’s share price was up more than four percent in late trading after the results were released.

Microsoft Chief Executive Satya Nadella said last week that he was laying off about five percent of the company’s workforce, just days before pumping several billion dollars into OpenAI, the company behind the controversial chatbot ChatGPT.

The job cuts coincided with similar killings at other tech giants, as companies reversed a big hiring spree during the pandemic when demand for tech products exploded.

Nadella said ChatGPT and other AI breakthroughs by research firm OpenAI will be integrated into Microsoft products including the Windows operating system, Office and the Bing search engine.

Microsoft is also trying to overcome major regulatory hurdles to complete its $68.7 billion buyout of video game giant Activision Blizzard.

US and EU regulators are highly skeptical of the purchase, arguing it would give Microsoft’s Xbox console an unfair advantage over rivals such as Sony’s PlayStation.

The market had been eagerly awaiting the group’s quarterly results for its closer offering in cloud computing, Microsoft’s biggest business and a sign of a bigger economy.

The company’s “intelligent cloud” business, which brings together its servers and data analytics services, brought in $21.5 billion in the second quarter of its fiscal year, up 18 percent from a year earlier.

Growth of its remote computing platform, Azure, at a slower-than-usual 31 percent, drove the activity.

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