Islamabad (TDI): Microsoft has closed its office in Pakistan and laid off a small number of employees. The move reflects the tech giant’s global restructuring strategy as it pivots more aggressively toward cloud services and artificial intelligence.
Earlier reports about the closure gained traction following a LinkedIn post by Jawad Rehman, Microsoft’s former country head for Pakistan. In the post, he stated that the company was “officially closing its operations in Pakistan.”
Although Microsoft maintained only a limited on-ground presence in recent years, much of its local engagement had already shifted to foreign offices and partnerships within Pakistan.
The office closure in Pakistan is part of a broader global restructuring at Microsoft. On Wednesday, the company announced that nearly 4% of its global workforce, about 9,000 employees, would be laid off as part of ongoing changes. In May, approximately 6,000 workers were affected in a previous round of cuts.
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The company said the changes are aimed at streamlining management layers and simplifying its business processes and product offerings.
According to the Ministry of IT and Telecommunications, Microsoft’s move is aligned with the industry-wide shift from traditional on-premises software deployment to a Software-as-a-Service (SaaS) model.
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The Ministry emphasized that Microsoft’s decision should not be seen as a withdrawal from the Pakistani market. Instead, it’s a shift to a partner-led delivery strategy that relies on remote servicing and cloud-based platforms, according to Dawn.
While other multinational companies, including ride-hailing service Careem, have announced full exits from Pakistan recently, analysts believe Microsoft’s move is distinct. It marks a transition in service delivery rather than a retreat from the market.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
