Dive Brief:
- Microsoft reported better-than-expected quarterly adjusted revenue for the quarter ended Sept. 30, lifted primarily by demand for its cloud products.
- The company has been shifting its focus to cloud services as demand for PCs and the Windows software that goes with them has slowed.
- Microsoft also reported strong overseas sales – the company got about 54% of its revenue from outside the United States in fiscal 2015.
Dive Insight:
Revenue from Microsoft's cloud business rose 8% to $5.9 billion, the company reported. The results announced late last week were also the first under a new reporting structure designed to help the company emphasize its cloud and mobile businesses. The results were also the first to include Windows 10.
Microsoft has been cutting costs and streamlining its operations to focus on more lucrative businesses recently.
The company also announced that, despite the good news, it plans to lay off about 1% of its workforce. That’s in addition to the 7,800 jobs the company announced it would cut in July.
"The job reductions were spread across more than one business area and country and reflect adaptations to business needs," a Microsoft spokeswoman said.
Overall, revenue in the company’s cloud business rose 14% in Q3, accounting for about 29% of overall revenue.
