Microsoft recorded a profit of more than $36.6bn (£27.5bn) in the three months to the end of September, while quarterly revenue rose to $92.3bn, a 19 per cent increase year-on-year. Revenue growth was driven by strong performance in cloud computing, with Microsoft Cloud revenue up 30 per cent.
On the same day it released its results, Microsoft announced it would offer severance packages to around 60,000 employees as a cost-cutting measure while it invests billions of dollars in artificial intelligence. The company stated that the offer was intended to adapt the workforce to "changing needs" and would create "greater flexibility" for the firm. Employees who accept the offer will be able to leave with financial support and career planning resources.
Microsoft currently employs more than 220,000 people worldwide. Earlier this week, the company said it would extend its voluntary departure offer to eligible employees in teams in Canada, India, the UK and the United States.
Chief Executive Satya Nadella stated that the development of artificial intelligence had helped drive the adoption of the technology and delivered "real impact in every industry". Nevertheless, Microsoft warned of risks in its report, including "significant investments" in artificial intelligence. The company is investing heavily in the infrastructure that powers the technology.
Microsoft shares rose almost 2.9 per cent in after-hours trading in New York on Wednesday. Major technology companies such as Amazon, Meta and Alphabet are expected to spend more than $700bn this year on AI chips and infrastructure such as data centres.
In contrast to Microsoft, Alphabet shares fell 9.75 per cent, with the company reporting a 25 per cent drop in quarterly net profit compared with the same period last year. Alphabet said it would continue to invest heavily in artificial intelligence.
