Tech conglomerate Microsoft has announced its decision to shut shop in Pakistan after 25 years as part of its global strategy to reduce its workforce.

The tech giant has announced its second mass lay-offs after January, which would include terminating almost 9,100 employees worldwide. Its last major restructuring was done in 2023. With a cut of 4 per cent of its workforce, the company plans to shift to a cloud-based, partner-led model.

Meanwhile, former founding Country Manager of Microsoft Pakistan, Jawwad Rehman, called it a “troubling sign” for Pakistan’s economic future.

Posting on LinkedIn, he said, “Even global giants like Microsoft find it unsustainable to stay”. Rehman urged the government and the IT minister to engage with Microsoft and offer a (Key Performance Indicators) KPI-driven plan.

Rehman also pointed out that Microsoft had shifted its expansion plans from Pakistan to Vietnam in late 2022 due to instability.
“That opportunity was lost”, he wrote.

Rehman clarified that Microsoft did not operate fully on a commercial base in Pakistan, instead relying on liaison offices while managing licensing and contracts from Ireland, the tech giant’s European hub. In recent years, much of the liaising had also shifted to local partners.

Former Pakistan President, Arif Alvi, also expressed concern over Microsoft’s shutting down of operations in a post on his official X handle.