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Microsoft profit falls 7% on Nokia loss | Microsoft profit falls 7% on Nokia loss |
(about 2 hours later) | |
Technology giant Microsoft reported a 7% fall in profit during the second quarter. | Technology giant Microsoft reported a 7% fall in profit during the second quarter. |
The company said profit during the March to June period was $4.6bn (£2.7bn), compared with $4.97bn during the same period last year. | The company said profit during the March to June period was $4.6bn (£2.7bn), compared with $4.97bn during the same period last year. |
Microsoft said its Nokia division, which it acquired in April, lost $692m. | Microsoft said its Nokia division, which it acquired in April, lost $692m. |
Last week, Microsoft announced it would cut 18,000 jobs - the biggest round of job cuts in the company's 39-year history. | Last week, Microsoft announced it would cut 18,000 jobs - the biggest round of job cuts in the company's 39-year history. |
Around 12,500 of those positions will be eliminated in the Nokia phone business. | |
"We are driving growth with disciplined decisions, bold innovation, and focused execution," said chief executive Satya Nadella in a statement, choosing to focus on revenues from Microsoft's cloud division, which he said were set to double to $4.4bn this year. | "We are driving growth with disciplined decisions, bold innovation, and focused execution," said chief executive Satya Nadella in a statement, choosing to focus on revenues from Microsoft's cloud division, which he said were set to double to $4.4bn this year. |
Shares in Microsoft were mostly flat in trading after stock market hours, although they are up more than 20% for the year as investors hope Mr Nadella's vision for change will lead to a boost in the bottom line. | |
Last week, Mr Nadella said that he was cutting positions partly as a result of incorporating Nokia's thousands of workers into Microsoft but also in an effort to move the company away from its core software operations towards its cloud computing business. | |
Cloud computing allows companies to rent computer services including software and storage, in flexible bundles, rather than investing in expensive equipment themselves. | |
Microsoft's job cuts total more than 14% of the firm's 127,000 workforce - which is nearly 50% bigger than that of rival Apple. |
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