Microsoft profits soar days after announcing thousands of layoffs

Around 60,000 workers will be offered buyouts by the Windows developer as it seeks to reduce expenses.

This action comes as technology giant Microsoft reported profits exceeding $36.6bn (£27.5bn) for the period ending in September.

The announcement of workforce reductions by more than a quarter followed the release of these strong financial results.

Microsoft is pouring billions into artificial intelligence (AI) infrastructure, mirroring heavy investments seen across other major tech firms.

On Wednesday, the company stated its quarterly revenue climbed to $92.3bn, marking a 19% increase compared to the previous year, fueled by its cloud computing operations.

The earnings were boosted further by a 30% rise in revenue for Microsoft Cloud, its suite of enterprise technology services.

Satya Nadella, the firm's chief executive, commented that AI advancement has spurred technology adoption and delivered "real-world impact across every industry."

The company also noted financial risks, citing "substantial investments" in AI as one of several uncertainties that could affect its finances.

Furthermore, Microsoft announced it would extend a voluntary redundancy offer to eligible staff in teams across Canada, India, the UK, and the US to align its workforce with "changing needs," aiming to create "greater flexibility."