Microsoft officially shuts down operations in Pakistan

Microsoft officially closed its operations in Pakistan on Friday, marking the end of its 25-year presence in the South Asian country.

The company’s first lead in Pakistan, Jawwad Rehman, revealed the news in a LinkedIn post, adding that the last few employees were formally informed. Reportedly, five Microsoft employees in Pakistan will be laid off.

Rehman mentioned the unstable situation in the country as one of the reasons for the exit, saying:

“This is more than a corporate exit. It’s a sobering signal of the environment our country has created.. one where even global giants like Microsoft find it unsustainable to stay. It also reflects on what was done (or not done) with the strong foundation we left behind by the subsequent team and regional management of Microsoft.”

Pakistan’s Information and Broadcasting Ministry called the restruction “part of a wider workforce-optimisation programme”, reflecting “a long-signalled strategy”.

In response to Dawn’s query, a Microsoft spokesperson commented on how they’re planning to continue to serve customers, “We will serve our customers through both our strong and extensive partner organisation, and other closely located Microsoft offices. We follow this model successfully in a number of other countries around the world.”

This follows the news that Microsoft will cut about 4% of jobs as it looks to rein in costs amid large investments in artificial intelligence (AI). Earlier in May, the tech giant announced plans to reduce its workforce by around 3%, spending heavily on AI as it sees it as a major growth engine — and making cuts elsewhere.

Microsoft, which had 228,000 workers as of June last year, regularly resorts to layoffs to prioritize staffing in its main focus areas.