Microsoft Closes Pakistan Office After 25 Years Amid Global Restructuring

After a 25-year presence, Microsoft has officially shut down its office in Pakistan as part of a broader global restructuring initiative. The decision reflects the company’s ongoing transition to a cloud-first, partner-led model.

This closure coincides with Microsoft’s latest round of global layoffs, which will impact around 9,100 employees—approximately 4% of its total workforce—marking its most significant workforce reduction since 2023, according to The Verge.

Microsoft never maintained a full-scale commercial operation in Pakistan. Instead, its local office functioned primarily as a liaison center, catering to enterprise, education, and government clients. In recent years, much of this activity had already been delegated to regional partners, with licensing and contract management handled out of Microsoft’s European headquarters in Ireland.

Former President Dr. Arif Alvi criticized the move on social media, calling it a “troubling sign.” He stated that Microsoft once considered Pakistan for expansion but ultimately opted for Vietnam by late 2022 due to local instability. “The opportunity was lost,” he wrote.

Jawwad Rehman, Microsoft Pakistan’s founding country manager, echoed this sentiment, noting that the exit reflects the challenging business environment. “Even global giants like Microsoft find it unsustainable to stay,” he said in a LinkedIn post.

Tech entrepreneur Habibullah Khan added that Microsoft’s revenue from Pakistan was estimated at around $50 million—less than 0.02% of the company’s global income—and that local staffing had already been significantly reduced. “Their relationship with Pakistan was very tenuous,” he wrote on X (formerly Twitter).

Despite the closure, Microsoft will continue to serve Pakistani customers through its regional teams and partner network. However, the move highlights the increasing pressure on multinational companies to streamline international operations in response to evolving global strategies.