Microsoft profits soar days after announcing thousands of layoffs

Technology giant Microsoft says its profits for the three months to the end of September jumped to more than $36.6bn (£27.5bn), just days after announcing plans to cut its workforce by more than a quarter.

On Monday, the Windows developer said it would offer voluntary buyouts to around 60,000 of its workers to cut costs as it pours billions of dollars into artificial intelligence (AI).

Like other tech firms, Microsoft is investing heavily in the infrastructure that powers AI even as questions remain over whether such huge spending will pay off.

Microsoft shares rose by almost 2.9% in after hours trading in New York on Wednesday.

The recent financial results of tech companies have been closely watched by investors as they gauge whether the heavy spending on AI is sustainable.

Microsoft said on Wednesday that its quarterly revenue rose to $92.3bn, driven by strong growth in its cloud computing business.

The firm's chairman and chief executive Satya Nadella said in a statement: "We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack."

"By helping organisations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry," Nadella said.