AP

Microsoft, amid layoffs, says quarterly profit declined 12%

Jan 25, 2023, 7:08 AM
(AP Photo/Rick Rycroft, File)...
(AP Photo/Rick Rycroft, File)

(AP Photo/Rick Rycroft, File)

Microsoft on Tuesday reported a 12% drop in profit for the October-December quarter, reflecting the economic uncertainty it said led to its decision to cut 10,000 workers.

The company reported quarterly profit of $16.43 billion, or $2.20 per share.

Excluding one-time items such as $800 million to pay severance to laid-off employees, the company based in Redmond, Washington, said it earned $2.32 a share, which topped Wall Street expectation for adjusted earnings of $2.29 a share. Microsoft’s stock was up more than 4% in extended trading following the release of its earnings report.

The software maker posted revenue of $52.75 billion in the October-December period, its second fiscal quarter, up 2% from the same period a year ago. Analysts polled by FactSet expected Microsoft to post revenue of $52.99 billion for the quarter.

Microsoft last week blamed “macroeconomic conditions and changing customer priorities” for its decision to cut nearly 5% of its global workforce. It’s one of a number of tech companies, including Google, Amazon, Salesforce and Facebook parent Meta, to announce mass layoffs.

Microsoft’s personal computing business, centered on its Windows software, was widely expected to continue a deterioration that began earlier last year due to economic uncertainties and crimped demand. Quarterly sales from that segment dropped 19% to $14.24 billion, the company said Tuesday.

The company gets licensing revenue from PC manufacturers who install its Windows operating system on their products.

Market research firm Gartner reported that worldwide PC shipments in the October-December quarter declined 28.5% from the same period of 2021, the steepest quarterly decline since Gartner began tracking the market in the 1990s.

Among the factors reducing consumer demand for PCs were increased inflation, higher interest rates, the expectation of a global recession and the fact that many people already bought new computers during the COVID-19 pandemic, Gartner said.

With a weak PC market, analysts were closely watching for results from Microsoft’s other big business segments — namely, its cloud-computing division, where sales grew 18% to $21.51 billion. Revenue also grew from the company’s workplace software segment — which includes the Office suite of products — by 7% to $17 billion.

In a bid to further integrate the latest advances in artificial technology into its products, Microsoft on Monday announced a “multiyear, multibillion dollar investment” in the artificial intelligence startup OpenAI, maker of ChatGPT and other tools that can write readable text and computer code and generate new images.

AP

RowVaughn Wells, mother of Tyre Nichols, pauses as she listens during a news conference about the d...
Associated Press

Tyre Nichols’ mom, chief: Women on two sides of a tragedy

MEMPHIS, Tenn. (AP) — Tyre Nichols ‘ mother was just steps away from her son but couldn’t hear his anguished cries. Beaten and broken, struggling to survive, Nichols had called out for her as five Memphis Police Department officers punched him, kicked him, and hit him with a baton after a traffic stop on Jan. […]
1 day ago
FILE - Beyoncé appears at the 63rd annual Grammy Awards in Los Angeles on March 14, 2021.  (AP Pho...
Associated Press

How to watch the Grammys live (including the red carpet)

LOS ANGELES (AP) — The Grammys have evolved from their humble beginnings into a daylong feast of music — and there’s many ways to watch the red carpet and show live. Most of the awards are handed out before that during the Premiere Ceremony, which the Recording Academy will stream live Sunday beginning at 3:30 […]
1 day ago
Associated Press

Woman dies as migrant boat sinks off Greek island

ATHENS, Greece (AP) — A woman died when a boat carrying at least 41 migrants crashed on a rocky coast on the Greek island of Leros Sunday, authorities said. Greece’s coast guard said they were alerted by a person who saw a body floating at sea. Three vessels and a helicopter, joined by a detachment […]
1 day ago
An injured man evacuates with family members from a residential building which was hit by a Russian...
Associated Press

Ukraine: 5 injured in rocket attacks on 2nd-largest city

KYIV, Ukraine (AP) — Five people were injured in Russian rocket attacks Sunday in the center of Kharkiv, Ukraine’s second-largest city, officials said. Kharkiv regional governor Oleh Syniehubov said four people were injured when a Russian S-300 missile fell near an apartment block and another was hurt when a missile hit a higher-education building. Local […]
1 day ago
FILE - A fuel trucks drives along a highway in Frankfurt, Germany, Jan. 27, 2023. European Union go...
Associated Press

Europe bans Russian diesel, other oil products over Ukraine

FRANKFURT, Germany (AP) — Europe imposed a ban Sunday on Russian diesel fuel and other refined oil products, slashing energy dependency on Moscow and seeking to further crimp the Kremlin’s fossil fuel earnings as punishment for invading Ukraine. The ban comes along with a price cap agreed by the Group of Seven allied democracies. The […]
1 day ago
FILE - Then-Republican candidate for Indiana Secretary of State Diego Morales speaks during an inte...
Associated Press

Election skeptics slow to get sweeping changes in GOP states

INDIANAPOLIS (AP) — Republicans in some heavily conservative states won their campaigns for secretary of state last year after claiming they would make sweeping changes aimed at keeping fraud out of elections. So far, their efforts to make good on their promises are mixed, in some cases because their rhetoric has bumped up against skepticism […]
1 day ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Microsoft, amid layoffs, says quarterly profit declined 12%