Microsoft, Amid Layoffs, Says Quarterly Profit Declined 12%

REDMOND, Washington (AP) 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, 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.

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 October-December quarter.

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