Microsoft employees are hit once more by layoffs across multiple groups, including gaming

[Windows Central]

Layoffs hit security, sales, gaming, and more across Microsoft.

Microsoft employees are hit once more by layoffs across multiple groups, including gaming : Read more

 

[Sonivaldo Silva]

So, Microsoft’s gaming division with Xbox and Game Pass is not doing well, with yet another round of layoffs. And worse, in the financial results, they will lie to shareholders and Windows fans, claiming they made a profit, but of course, they only profited by cutting costs and staff. Even Spirit can achieve good financial performance that way.

 

[Cmndr_Bytes]

It's all about keeping those shareholders happy. It's not enough to make profit that profit has to keep ever increasing. Enough is never enough. None of the upper, high level management are going to freeze their pay or bonuses, or god forbid take a cut in pay. Axe the teams doing the work to fill the greed.
*Disclosure. I hold a very small amount of MS shares but I would much prefer them treat those workers better than they do. Happy workers = good products = growth = increase in share price

From MS Website.

Fiscal Year 2024 Compared with Fiscal Year 2023​

Revenue increased $33.2 billion or 16% driven by growth across each of our segments. Intelligent Cloud revenue increased driven by Azure. Productivity and Business Processes revenue increased driven by Office 365 Commercial. More Personal Computing revenue increased driven by Gaming.


Cost of revenue increased $8.3 billion or 13% driven by growth in Microsoft Cloud and Gaming, offset in part by a decline in Devices.


Gross margin increased $25.0 billion or 17% driven by growth across each of our segments.


• Gross margin percentage increased slightly. Excluding the impact of the change in accounting estimate for the useful lives of our server and network equipment, gross margin percentage increased 2 points driven by improvement in More Personal Computing.


• Microsoft Cloud gross margin percentage decreased slightly to 71%. Excluding the impact of the change in accounting estimate, Microsoft Cloud gross margin percentage increased slightly driven by improvements in Azure and Office 365 Commercial, inclusive of scaling our AI infrastructure, offset in part by sales mix shift to Azure.


Operating expenses increased $4.0 billion or 7% driven by Gaming, with 7 points of growth from the Activision Blizzard acquisition, and investments in cloud engineering, offset in part by the prior year Q2 charge.


Operating income increased $20.9 billion or 24% driven by growth across each of our segments.


Prior year gross margin, operating income, net income, and diluted EPS were negatively impacted by the Q2 charge, which resulted in decreases of $152 million, $1.2 billion, $946 million, and $0.13, respectively.