Microsoft exits Pakistan amid global job cuts, restructuring 

ISLAMABAD: Microsoft has reportedly closed its operations in Pakistan, marking a significant development in the tech industry’s relationship with the country.  

The move comes on the heels of the company’s announcement of major global layoffs, with around 9,100 employees, roughly 4 per cent of its global workforce, set to be let go. This follows earlier rounds of cuts in May and June, largely targeting sales and operations teams.

While Microsoft never operated full-scale offices in Pakistan, it did maintain liaison setups that served corporate, educational, government and individual customers. Over time, however, the company had shifted much of its regional work to Europe. Licensing and contracts have been managed from its Irish hub for years, while local delivery was handled by certified partners on the ground. 

In a statement on Thursday, Pakistan’s Ministry of IT acknowledged Microsoft is reviewing the future of its liaison office as part of a broader cost-cutting and restructuring strategy. The ministry said the company’s move aligns with its long-term shift towards a partner-led, cloud-first business model and should not be seen as a complete exit from the Pakistani market. 

Even so, the news has sparked concern and disappointment. Former president Dr Arif Alvi described the development as a lost opportunity, recalling that Microsoft co-founder Bill Gates once considered Pakistan for a major expansion. According to Alvi, a shift in the political landscape pushed the company to choose Vietnam instead by late 2022. 

Former Microsoft Pakistan country head Jawwad Rehman called the closure “more than a corporate exit,” warning it reflects the difficult environment for foreign businesses in the country. “Even global giants like Microsoft find it unsustainable to stay,” he wrote on LinkedIn. 

Tech entrepreneur Habibullah Khan noted that Pakistan’s contribution to Microsoft’s global revenue was minimal, estimated at around $50 million, or just 0.018 per cent. He added that the company had already scaled back its local presence significantly and was operating through international billing and regional supply routes. 

The government says it remains in touch with Microsoft’s global leadership, hoping to preserve long-term collaboration and support for Pakistani developers, customers and partners. 

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