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 Microsoft has recorded its slowest sales growth in more than six years in its December quarter of 2022, as it took a $1.2 billion hit after laying off 10,000 people amid poor PC sales globally.

Revenue was $52.7 billion and increased 2 per cent while net income was $16.4 billion, decreased 12 per cent for the quarter that ended December 31.

Revenue in the 'More Personal Computing' was $14.2 billion and decreased 19 per cent. While Windows OEM revenue decreased 39 per cent, Xbox content and services revenue decreased 12 per cent and devices revenue decreased 39 per cent.

Microsoft Chairman and CEO Satya Nadella said the next major wave of computing is being born, as the Microsoft Cloud turns the world's most advanced AI models into a new computing platform.

"We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI," said Nadella.

Microsoft has made a "multiyear, multibillion dollar" investment in ChatGPT developer OpenAI.

Last week, the company said it will begin integrating ChatGPT into its Azure cloud services offerings.

"We are focused on operational excellence as we continue to invest to drive growth. Microsoft Cloud revenue was $27.1 billion, up 22 per cent year-over-year as our commercial offerings continue to drive value for our customers," said Amy Hood, executive vice president and chief financial officer of Microsoft.

While LinkedIn revenue increased 10 per cent, Search and news advertising revenue excluding traffic acquisition costs increased 10 per cent in the quarter.