Microsoft’s sales have slowed sharply as customers facing economic difficulties cut back on technology spending.
The company said sales rose just 2% to $52.7 billion (£42.7bn) in the three months to December, the smallest quarterly increase in more than six years.
The update came just days after the company said it would reduce its workforce by about 5% and cut 10,000 jobs.
The tech industry has been hit with job cuts in recent months as advertising and other spending eases.
Businesses are concerned about the economy, while households who have splashed out on computers and other technology at home during the pandemic have made cuts, especially as the cost of living rises.
Microsoft said revenue associated with its Xbox video game system fell 12% while spending on its Windows products fell 39%.
Revenue growth at the company’s Azure cloud computing unit — seen by analysts as a key growth driver for the company — came in better-than-expected, up 31%, and helped lift the company’s shares in after-hours trading.
But overall profits fell 12% to $16.4 billion.
Add Comment