After costly summer layoffs, Microsoft’s cloud has a silver lining
The cost of Microsoft Corp.’s massive summer layoffs and a shift in focus to the mobile market has meant a dip in profits for the tech giant. Yesterday the company released its fiscal first quarter earnings, reporting a 13 percent slide in profits from 62 cents a share this time last year to 54 cents a share. But as Satya Nadella completes his second full quarter as Microsoft CEO, sales are up 25 percent from this time last year to $23.2 billion.
As the company pushes on with its transitions following the $7.17 billion acquisition of Nokia Oyj’s mobile phone division in April, hefty operating costs have been incurred, while company layoffs set Microsoft back a reported $1.14 billion in severance packages shared among 14 percent of 125,000 global employees. It’s not all bad news though; Lumia phone sales rose from 8.3 million handsets sold to 9.3 million over the year, resulting in $2.6 billion in sales revenue for Microsoft’s smartphone division.
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