In the most recent quarter, Microsoft reported $62 billion in revenue, $27 billion in operating income, and $21.9 billion in net income. The company also made the decision to cut 1,900 jobs. Alphabet, on the other hand, reported $86.3 billion in revenue, $23.7 billion in operating income, and $20.7 billion in net income. Additionally, the employee count at Alphabet was down by nearly 8,000 compared to the year-ago period.
Key Takeaway
Tech giants like Microsoft and Alphabet have reported strong financial performance, but have also resorted to layoffs to control costs. The startup landscape is experiencing a decline in venture capital, yet there are promising developments in the realm of AI-driven technologies.
The Financial Picture
Both Microsoft and Alphabet have achieved operating profit at or around the $100 billion annual run rate mark. However, despite these impressive financial results, both companies have been actively working to control costs through layoffs.
Startup-Land
Similar to the situation with tech giants, there is a mixed sentiment in startup-land. Venture capital totals are declining, and many startups find themselves in challenging positions between funding rounds or between the private and public markets. Nonetheless, there are numerous upstart tech companies that are developing new tools and services using advanced AI models, showcasing the rapid advancements in this field.
