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Microsoft, like many other tech companies, is bracing for the worst.
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It announced plans to lay off 10,000 employees during the third quarter.
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The company's second quarter turned out to be mixed.
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The company earned $52.7 billion in revenues, up 2 per cent from last year but still below the $52.9 billion as predicted by analysts.
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Profits fell 12 per cent to $16.4 billion. This trend may continue throughout the year.
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Microsoft continues to ride high on cloud revenues despite the weakening PC market.
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