By maleeha zahid
After 25 years of presence in Pakistan, Microsoft has officially shut down its local office, citing global restructuring and a shift to a cloud-first, partner-led business model. The decision aligns with the company鈥檚 broader layoff plan, which includes cutting over 9,000 jobs worldwide鈥攁bout 4% of its global workforce鈥攎aking it one of the biggest layoffs since 2023.
Although Microsoft never had a full commercial base in Pakistan, it operated liaison offices focusing on enterprise, education, and government sectors. Over time, many of these functions had already shifted to local partners. Licensing and contract operations had long been handled by the company鈥檚 European hub based in Ireland, reducing the need for a direct physical presence in the country.
Former President Dr. Arif Alvi expressed disappointment over the closure, calling it a 鈥渢roubling sign鈥 for the country鈥檚 tech future. He claimed Microsoft had once shown interest in expanding in Pakistan but chose Vietnam instead due to ongoing instability. 鈥淭he opportunity was lost,鈥 he stated in a social media post, sparking fresh debate over Pakistan鈥檚 investment climate.
Jawwad Rehman, Microsoft Pakistan鈥檚 founding country manager, also responded to the news, saying that the company鈥檚 exit reflected current business realities. 鈥淓ven global giants like Microsoft find it unsustainable to stay,鈥 he posted on LinkedIn, pointing to the challenges multinational firms face in volatile markets.
Tech entrepreneur Habibullah Khan offered a practical view, highlighting that Microsoft鈥檚 revenue from Pakistan was estimated at just $50 million鈥攍ess than 0.02% of its global earnings. He noted that much of Microsoft鈥檚 local staff had already been reduced, and operations were minimal. 鈥淭heir relationship with Pakistan was always very limited,鈥 he wrote on X.
Despite the closure, Microsoft will continue to serve Pakistani clients through its regional teams and local partners. However, the decision signals a growing trend among global tech firms to downsize international footprints and focus on more scalable, centralized business models.