On Monday, the Windows developer stated it would offer buyouts to around 60,000 of its workers to cut costs. Microsoft stated on Wednesday that this move will create greater flexibility for the firm and allow workers to leave with financial support and career planning resources. Quarterly revenue rose to $92.3bn, representing a 19% increase from a year earlier. These earnings were lifted by a 30% increase in revenue for Microsoft Cloud, its range of enterprise technology services.
Microsoft reported that its profits for the three months to the end of September jumped to more than $36.6bn, or £27.5bn, just days after announcing plans to cut its workforce by more than a quarter.
Like many other major tech firms, Microsoft is investing heavily in the infrastructure that powers AI while questions remain over whether such huge spending will pay off.
The financial results highlight the company's strong revenue growth in its cloud computing business even as the technology giant pours billions of dollars into artificial intelligence.
Following the financial report, Microsoft shares rose by almost 2.9% in after-hours trading in New York on Wednesday.
Microsoft's stronger-than-expected earnings contrasted with Alphabet, as the owner of Google disappointed investors with its financial results on Wednesday. Alphabet shares fell by 9.75% after it reported a 25% drop in quarterly net profit from a year earlier and said it will continue to spend heavily on AI.