Microsoft Shutdown in Pakistan: Microsoft has shut down its operations in Pakistan after 25 years, citing a shift in its global strategy and reorganization plans. The company made the move on Thursday and pointed to its transition toward a cloud-based, partner-led model as the key reason behind the closure.

The decision sparked concern among stakeholders, who on Friday called it a “troubling sign” for the country’s economy. They expressed worry over the potential impact on local tech development and international business confidence.

Huge Layoffs:

Microsoft took this action as part of its largest round of layoffs since 2023, cutting around 9,100 jobs globally, roughly 4% of its workforce. Former Microsoft Pakistan founding country manager Jawwad Rehman urged the government and the IT minister to engage with global tech giants using a bold, KPI-driven plan. He stated that Microsoft’s exit reflects the current business climate. Writing on LinkedIn, he said, “Even multinational behemoths like Microsoft find it unsustainable to stay.”

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pakistan Clarifies on Microsoft Shutdown:

Former Pakistani president Arif Alvi also voiced his concerns about Microsoft shutting down its operations. In a post on X, he wrote, “It is a concerning indication for our economic future.” He stated that Microsoft had once considered expanding into Pakistan, but by late 2022, the company chose Vietnam instead due to political unrest in the country. “The opportunity was lost,” he added.

Jawwad Rehman clarified that Microsoft operated through liaison offices in Pakistan, serving enterprise, education, and government clients, rather than maintaining a full commercial presence. He explained that Microsoft managed licenses and contracts from its European base in Ireland, but over the past few years, it shifted much of that activity to local partners.

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