Microsoft Closes Pakistan Office Amid Strategic Shift to Cloud

In a strategic realignment, Microsoft has shuttered its office in Pakistan, resulting in the layoff of five employees, reported Dawn. The closure was highlighted by a LinkedIn post from Jawad Rehman, the former head of Microsoft Pakistan, who cited insider sources confirming the tech giant's official withdrawal from on-ground operations in the country.

Microsoft, which previously maintained a small on-ground presence in Pakistan, will now rely on foreign offices and local partners to serve its customers, noted Dawn. A Microsoft spokesperson stated that the company will continue to support Pakistani clients through its expansive partner organizations and nearby regional offices, a strategy already effectively implemented in other countries.

According to Dawn, Microsoft's decision aligns with its global restructuring strategy towards artificial intelligence and Software-as-a-Service models. This week, the corporation announced a four percent reduction in its worldwide workforce, cutting nearly 9,000 jobs out of 2,28,000 employees following similar layoffs in May. The Ministry of IT and Telecommunications reassured that the shift signifies a transition to a cloud-based, partner-led approach rather than a complete exit from Pakistan.

Tech expert Habibullah Khan told Dawn that as firms worldwide transition from on-premise to SaaS models, local market physical presence is diminishing. He stressed that Microsoft's exit is dictated by global trends and strategic decisions, not commentary on Pakistan's technological landscape. Dawn pointed out similar moves by multinationals like Careem, though Khan assured that Microsoft's choice is motivated by cost-efficiency and strategic alignments rather than regional instability.

(With inputs from agencies.)