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Technology · Global

Microsoft reports $36.6bn profit after announcing buyouts for 60,000 workers

Microsoft reported more than $36.6bn in profit for the three months to the end of September, days after announcing buyouts for around 60,000 workers. The company said quarterly revenue reached $92.3bn, while its shares rose almost 2.9% in after-hours trading on Wednesday.

AI-assisted synthesis · Based on 3 independent reports from 4 outlets · Article text read from 1 of 3 reportsHow it's made

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4 outlets2 regionsLatest reporting 2 min read
Coverage: Mostly CenterL 1 · C 2 · R 0 · 1 unrated
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What happened

Key facts

  • Microsoft reported profits of more than $36.6bn for the three months to the end of September (per myjoyonline.com).
  • Microsoft announced plans to offer buyouts to around 60,000 workers (per myjoyonline.com).
  • Microsoft said the buyouts were intended to cut costs as it spends billions on artificial intelligence (per myjoyonline.com).
  • Microsoft reported quarterly revenue of $92.3bn, up 19% from a year earlier (per myjoyonline.com).
  • Microsoft said growth in its cloud computing business drove the quarterly revenue increase (per myjoyonline.com).
  • Revenue from Microsoft Cloud increased by 30% (per myjoyonline.com).
  • Microsoft shares rose almost 2.9% in after-hours trading in New York on Wednesday (per myjoyonline.com).

The brief

Microsoft reported profit of more than $36.6bn for the three months to the end of September, days after saying it would offer buyouts to around 60,000 workers. The company’s plans and results were reported by MyJoyOnline, which said Microsoft described the buyouts as a cost-cutting measure as it continues spending billions on artificial intelligence (AI).

The reported profit figure was accompanied by quarterly revenue of $92.3bn, a 19% increase from the same period a year earlier. Microsoft said growth in its cloud computing business drove the revenue increase. Revenue from Microsoft Cloud, which MyJoyOnline describes as the company’s enterprise technology services, rose 30%.

Microsoft shares gained almost 2.9% in after-hours trading in New York on Wednesday, according to MyJoyOnline. That movement followed the company’s reported quarterly results; the account does not give a broader explanation for the share-price change. The buyout plan covers around 60,000 workers, according to the outlet.

The account describes the offer as voluntary, while Microsoft’s stated reason was to cut costs as it invests heavily in AI. The figures provided concern the number of workers offered buyouts, not how many will accept them.

The article places Microsoft’s spending plans in a wider technology-sector context: Amazon, Meta and Alphabet were expected to spend more than $700bn collectively this year on AI chips and infrastructure, including data centres. That figure covers the three companies named, rather than Microsoft alone.

Microsoft’s results and buyout announcement therefore sit alongside a large stated commitment to AI investment and reported growth in cloud revenue. The account does not specify the eventual number of jobs affected by the buyout offer or provide a breakdown of the companies’ projected AI spending.

Why it matters

  • The buyouts could mean tens of thousands of workers leave Microsoft, while reducing payroll costs as the company directs billions toward AI development. Cloud growth is generating revenue to support that investment, but the shift may reshape staffing and priorities across the company as it competes to build AI products.

What to watch next

  • Over the next few weeks, Microsoft’s workforce updates or regulatory filings could show how many employees accept the buyout offers and which business units are affected.
  • In its next quarterly results, Microsoft’s leadership can clarify whether cost savings from the buyouts are offsetting its AI infrastructure spending and whether that spending is increasing.
  • Watch Microsoft’s next earnings report for Azure and other cloud growth figures; they will indicate whether cloud demand is sustaining the revenue gains reported this quarter.
  • Investors will look for Microsoft to explain how it is balancing headcount reductions with hiring or investment in AI-related roles in upcoming company and investor communications.

How it's being covered

Coverage analysisShow details
4 source articles · 4 unique outlets · 2 distinct reports
Outlet political mix: Mostly Center· 1 Left · 2 Center · 1 unrated
Where the outlets are based: Europe 50% · Africa 25% · Other 25%
Outlet political mix
Mostly Center
Left
Center
Right
1 outlet
2 outlets
0 outlets
The marker shows coverage balance: each unique outlet counts once. 1 unrated outlet is not included.
Geography
Where the outlets covering this story are based.
4 unique outletsDominant coverage: Europe
How we measure coverage

How outlets' accounts compare

Updat3 does not yet have enough full reports to compare how outlets framed this story.

Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.
  1. The company’s roots date to April 4, 1975, when Bill Gates and Paul Allen founded Microsoft to develop software for personal computers.
    Background · from our historical context
  2. Microsoft had entered cloud computing as a major business area after launching Azure in 2008, and its cloud infrastructure later provided computing capacity for AI services.
    Background · from our historical context
  3. The partnership built on Microsoft’s cloud business, established through Azure, which became generally available on February 1, 2010.
    Background · from our historical context
  4. Satya Nadella became Microsoft’s chief executive.
    Background · compiled and fact-checked by Updat3
  5. Microsoft invested $1 billion in OpenAI and became its exclusive cloud provider.
    Background · compiled and fact-checked by Updat3
  6. In 2023, Microsoft integrated OpenAI technology into products including Bing and Microsoft 365 Copilot.
    Background · from our historical context
  7. Microsoft announced a multiyear investment in OpenAI.
    Background · compiled and fact-checked by Updat3
  8. Microsoft announced plans to cut 10,000 jobs by the end of March.
    Background · compiled and fact-checked by Updat3
  9. Microsoft and OpenAI revised their partnership, giving OpenAI more flexibility to obtain computing capacity from other providers.
    Background · compiled and fact-checked by Updat3
  10. Microsoft shares rose almost 2.9% in after-hours trading in New York on Wednesday.
    Reported in this story's sourcesSource:myjoyonline.com

How we got here

Microsoft announced on January 18, 2023, that it would cut 10,000 jobs by the end of March, citing changing customer priorities and economic conditions.

That reduction came as the company expanded its investment in artificial intelligence: on January 23, 2023, Microsoft announced a multiyear extension of its partnership with OpenAI, following earlier investments in 2019 and 2021. The partnership built on Microsoft’s cloud business, established through Azure, which became generally available on February 1, 2010.

Original sources

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