Microsoft, like many other technology companies, will lay off 10,000 employees, even though their income has increased. But...
The layoffs of 10,000 employees will be carried out in Q3 of the 2023 fiscal year. In the financial report for Q2 of the 2023 fiscal year, Microsoft's revenue actually rose 2% compared to last year, reaching USD 52.7 billion.
But the increase was lower than analysts' predictions, which previously predicted Microsoft's revenue would reach USD 52.9 billion. But behind the increase in revenue, Microsoft's profits fell by 12% to USD 16.4 billion, and the downward trend will continue throughout 2023.
During 2022, Microsoft's business conditions varied, some strengthened but some weakened. The Personal Computing division, for example, which includes Windows, Xbox, and PC hardware, experienced a 19% year-over-year decline with revenues of USD 14.2 billion.
They said revenue from Windows sales fell 39%, while revenue from Xbox content and services fell 12%. Revenue from the device sector also fell 39%, because revenue from Surface sales was not large during the late 2022 holiday season.
But on the other hand, the intelligent cloud business, for example, rose 18% year over year to reach USD 21.5 billion. So it's not strange that Microsoft dares to invest heavily in this business, we were quoted as saying from Engadget, Thursday (26/1/2023).
Namely by injecting funds of USD 10 billion into OpenAI, the company that makes ChatGPT. Microsoft then plans to add ChatGPT to its Azure OpenAI service in the near future, and is also said to be integrating the AI chatbot technology into Bing, their search engine.
"The strong performance of Azure, Microsoft's key cloud business, is a welcome relief amid the slowdown in cloud optimization, which sent stock prices higher. Tech investors can rest easy knowing that the slowdown in Microsoft's core business is not as bad as they thought," said Jesse Cohen, senior analyst at investing.com.