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Why Microsoft Shut Down Its Office in Pakistan?

Microsoft has officially closed its office in Pakistan as part of a global restructuring plan. While the move resulted in the layoff of only five employees, it does not mean Microsoft is leaving the country. Instead, the company will now handle its operations through regional hubs and local partner firms.

According to Microsoft, this shift is designed to improve efficiency and align with its long-term focus on advanced technologies, particularly artificial intelligence (AI) and cloud computing. The company is moving away from traditional on-ground software models and strengthening its Software as a Service (SaaS) offerings.

This closure is part of a wider round of global job cuts. Microsoft recently announced the elimination of around 9,000 jobs nearly 4% of its worldwide workforce — following another layoff of 6,000 employees earlier this year. These steps are part of the company’s push to streamline operations.

Pakistan’s Ministry of IT and Telecom noted that the decision reflects a global trend in the tech industry, where companies are reducing local footprints and shifting toward digital-first strategies. This allows them to remain flexible while depending more on cloud systems and regional management.

Despite shutting down its local office, Microsoft has reassured its customers in Pakistan that services, products, and technical support will continue through authorized regional teams and partners. The company remains committed to serving the Pakistani market through a modern, cloud-driven approach.

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