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answer: direct
beat: ai-society
source: 1 article · updated: July 6, 2026
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Was Microsoft actually profitable when it announced the layoffs?

Yes. Microsoft's most recently reported quarter — fiscal Q3 2026, posted April 29, 2026 — brought in $82.9 billion in revenue, up 18% year-over-year, with $31.8 billion in net income and $30.9 billion in quarterly capital spending. Its AI business was running at a $37 billion annualized revenue pace, up 123% year-over-year.

Answered in

Microsoft Just Cut 4,800 Jobs — During Its Best Revenue Quarter Ever

Microsoft cut roughly 4,800 jobs (2.1% of staff) on July 6, 2026 — Xbox hit hardest — weeks after posting $82.9B in record quarterly revenue.

Crashtech Editorial July 6, 2026 AI & Society

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