Microsoft cuts UK jobs as sales near £10bn and profit surges
Microsoft shed more than 200 UK jobs in the year its turnover jumped to almost £10bn, it has been revealed.
The US tech giant reduced its headcount from 5,540 to 5,337 in the year to 30 June, 2024, new accounts filed with Companies House show.
The reduction comes after Microsoft’s headcount grew from 4,955 in the previous 12 months.
The results also show that the giant’s turnover surged from £8.38bn to £9.62bn in the year while its pre-tax profit also grew from £652m to £756.4m.
Despite the huge boost in its sales and profit, Microsoft has not approved a dividend for the year, having issued one to the tune of £150m for the prior 12 months.
Microsoft’s product turnover fell from £1.67bn to £1.51bn but its sales from services and other categories jumped from £6.70bn to £8.11bn.
Microsoft to open ‘hyperscale’ data centre
The accounts also come after Microsoft’s $13bn (£11bn) partnership with OpenAI was cleared by the UK’s Competition and Markets Authority (CMA) last month.
The antitrust watchdog ruled that Microsoft‘s investment did not meet the threshold for a full-scale merger investigation, despite concerns over the tech giant’s influence on the AI startup.
The CMA acknowledged that Microsoft gained “material influence” over OpenAI through its initial 2019 investment.
Yet, it determined that it had not acquired “de facto control,” meaning it wasn’t effectively running the firm or dictating its decisions.
Also last month, Microsoft said a growing divide between UK leaders who do and don’t leverage AI could threaten the country’s economic potential and the efficiency of its public services.
According to a report from Microsoft, businesses and public sector organisations with clear AI strategies are significantly outperforming those without, highlighting an urgent need for broader adoption of AI driven technologies.
The tech giant warned that only half of UK organisations have developed AI strategies and built the necessary skills to implement them.
Meanwhile, the other half remains stuck in neutral, lacking formal AI plans and struggling to translate AI ambitions into action.
In June last year, Microsoft said it was one step closer to building a ‘hyperscale’ data centre near Leeds after it purchased a 48-acre site from British property developer Harworth Group.
The company bought the land, which used to be home to the Skelton Grange power station, for £106m.