Microsoft said on Tuesday that slowing sales and falling profits in the final quarter of 2022 as the economic outlook prompted it to lay off 10,000 employees.
Washington state-based tech giant – owner of linkedin, xbox And windows — said total sales in the October to December period grew by only two percent to $52.7 billion (roughly Rs. 4,30,325 crores), the slowest growth in six years.
Net profit for the quarter stood at $16.4 billion (roughly Rs. 1,33,915 crores), down 12 percent year-on-year, its earnings release continued.
However, the results met, or exceeded, expectations in some segments, and Microsoft’s share price rose more than four percent in late trading after the results were announced.
Microsoft chief executive Satya Nadella Last week he said 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 are similarly matched at other tech giants as companies reverse a huge hiring spree during the pandemic when demand for tech products exploded.
Nadella has said that ChatGPT and other artificial intelligence breakthroughs by the OpenAI research company will be integrated into Microsoft products including the Windows operating system, Office and the Bing search engine.
Microsoft is also trying to overcome the dominant regulatory constraints to complete its purchase of the video gaming giant activism blizzard for $68.7 billion (roughly Rs. 5,64,474 crores).
US and EU regulators are highly skeptical of the purchase and allege it would give Microsoft’s Xbox consoles an unfair advantage over rivals such as Sony’s PlayStation.
The conglomerate’s quarterly results were eagerly awaited by the market as they offer a closer look into cloud computing, which is Microsoft’s biggest business and a touchstone for the larger economy.
The company’s “Intelligent Cloud” business, which brings together its server and data analytics services, brought in $21.5 billion in its fiscal second quarter, up 18 percent year-over-year.
enhancement of its remote computing platform, BlueCarried out activity, slower than normal, at 31 percent.