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● LIVE Updated 2h ago · 17 sources tracked

Microsoft profits soar days after announcing thousands of layoffs

Technology giant Microsoft reported that its profits for the three months ending in September jumped to more than $36.6bn, or £27.5bn, driven by cloud growth and artificial intelligence demand. This financial surge arrived just days after the Windows developer announced plans to cut costs by offering buyouts to around 60,000 workers, amounting to more than a quarter of its workforce. Following the earnings report and the beat on quarterly cloud revenue estimates, Microsoft stock jumped 4 percent, outperforming other major tech companies.

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  • ✓ Microsoft reported that its profits for the three months to the end of September jumped to more than $36.6bn (£27.5bn).
  • ✓ The company announced plans to offer buyouts to around 60,000 workers to cut costs.
  • ✓ Microsoft stock jumped 4 percent as cloud growth drove earnings and revenue beats.
  • ✓ Microsoft beat quarterly cloud revenue estimates and Q1 expectations on the top and bottom line.
🛡️ Source Corroboration: 17 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Microsoft released its first-quarter earnings report showing a 32 percent profit increase to more than $36.6bn alongside plans to reduce its workforce by more than a quarter.

Live updates

  1. Microsoft Profits Jump 32% Following Workforce Reduction Plans

    Technology giant Microsoft reported that its profits for the three months ending in September jumped to more than $36.6bn, or £27.5bn, driven by cloud growth and artificial intelligence demand. This financial surge arrived just days after the Windows developer announced plans to cut costs by offering buyouts to around 60,000 workers, amounting to more than a quarter of its workforce. Following the earnings report and the beat on quarterly cloud revenue estimates, Microsoft stock jumped 4 percent, outperforming other major tech companies.

    Why it matters

    The sharp financial rise highlights a broader trend among major technology firms balancing massive investments in artificial intelligence with aggressive internal cost-cutting measures. Despite soaring net income and beating top and bottom line expectations for the first quarter, the company chose to target roughly 60,000 employees for buyouts to curb expenses. This juxtaposition of record profitability and workforce reduction underscores the high financial stakes of the current technology market.

    What is confirmed

    • Microsoft reported that its profits for the three months to the end of September jumped to more than $36.6bn (£27.5bn).
    • The company announced plans to offer buyouts to around 60,000 workers to cut costs.
    • Microsoft stock jumped 4 percent as cloud growth drove earnings and revenue beats.
    • Microsoft beat quarterly cloud revenue estimates and Q1 expectations on the top and bottom line.

    What to watch next

    • Monitor the acceptance rate and final count of the 60,000 employee buyout offers.
    • Track subsequent quarterly earnings to evaluate if artificial intelligence spending impacts long-term profit margins.
    Sources used for this update (19)
    1. economictimes.indiatimes.com — Business News Live, Share Market News - Read Latest Finance News, IPO ...
    2. www.bluesnews.com — Blue's News - All the carnage that's fit to post!
    3. www.bbc.com — BBC Home - Breaking News, World News, US News, Sports, Business...
    4. Reuters — Microsoft beats quarterly cloud revenue estimates
    5. The New York Times — Microsoft’s Profit Jumps 32% Despite Big Increase in Spending
    6. Yahoo Finance — Microsoft earnings live: Microsoft beats Q1 expectations on top and bottom line on AI growth
    7. CNBC — Microsoft stock jumps 4% as cloud growth drives earnings and revenue beat
    8. BBC — Microsoft posts $33.6bn profit after offering buyouts to one in four workers
    9. Yahoo Finance — What Microsoft (MSFT) Said on Its Q1 Earnings Call
    10. Microsoft — Press Release & Webcast
    11. Yahoo Finance — Microsoft posts 32% rise in Q1 FY27 net income to $36.6bn
    12. Yahoo Finance — Why Microsoft stock isn't getting crushed like Google stock after its earnings report
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