Microsoft has released their financial earnings report for their Q1 fiscal 2016, revealing the company earned $20.4 billion in GAAP revenue ($21.6 billion non-GAAP) with net income of $4.62 billion ($5.4 billion non-GAAP).

Compared to the same quarter last year, Microsoft's revenue has decreased by 12 percent from $23.2 billion, while net income has marginally increased by 2 percent from $4.54 billion.

As for individual businesses within Microsoft, Windows Phone didn't do too well in the last quarter, with revenue falling 54 percent in constant currency. Surface revenue also fell year-on-year, down from $908 million to $672 million in the last quarter. With the launch of the new Surface Pro 4 and Surface Book, expect Surface revenue to rise in the upcoming quarter.

Windows OEM revenue declined by 6 percent, while most other divisions did well: search revenue was up 29% in constant currency, Office commercial and cloud products grew 5%, and server and cloud products were up 13%. Microsoft also saw a year-on-year Xbox Live subscriber increase of 9 million, up to 39 million, and an Office 365 consumer subscriber increase of 3 million, up to 18.2 million.

Alongside the release of Q1 2016 financials, Microsoft announced that they would be cutting around 1,000 jobs. In a statement, the company said that job reductions "were spread across more than one business area and country and reflect adaptations to business needs."