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Microsoft is closing its local operations in Pakistan
MicrosoftMicrosoft(US:MSFT) TechCrunchยท2025-07-04 17:42

Core Points - Microsoft is closing its operations in Pakistan after 25 years, shifting to a model that relies on resellers and nearby Microsoft offices for customer service [1][2] - The closure will affect five employees in Pakistan, as Microsoft had no engineering resources in the country, focusing instead on selling Azure and Office products [2] - This decision is part of a broader restructuring, with Microsoft reducing its global workforce by 4%, equating to approximately 9,000 roles [3] Company Operations - Microsoft has transitioned licensing and commercial contract management for Pakistan to its European hub in Ireland, with local partners managing daily service delivery [4] - The exit is seen as part of a workforce-optimization program by the company [3] Industry Context - The exit highlights challenges in Pakistan's tech sector, which has not become a major engineering outsourcing destination compared to India [9] - The local tech ecosystem is primarily dominated by local companies and Chinese firms like Huawei, which have established significant market presence [9] - This move contrasts with Google's recent investment in Pakistan's public education sector and its plans to produce Chromebooks in the country [8]