Microsoft shuts down Pakistani operations after 25 years, ex-President Alvi expresses concern

Microsoft cited global restructuring and a shift to a cloud-based, partner-led model, behind taking the decision.

The announcement was made amid Microsoft's decision to lay off 9,100 employees, or about 4 percent of its global workforce.

Employees in Microsoft’s Xbox division, known as Microsoft Gaming, are being hit hard by these layoffs, although exact numbers and divisions are not yet known, reported The Verge.

According to The Express Tribune report, Microsoft never operated a full commercial base in Pakistan, relying instead on liaison offices focused on enterprise, education, and government clients.

Pakistan Reacts

Meanwhile, former Pakistani President Arif Alvi said the shutdown of Microsoft's operation in Pakistan reflected a troubling sign for the country's economic future.

In his X post, he said: " I vividly recall February 2022, when Bill Gates visited my office. On behalf of the people of Pakistan, I had the honor of conferring the Hilal-e-Imtiaz on him for his remarkable contributions to polio eradication in our country."

"Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, economic recovery in the 'awami' context feels like a distant & elusive dream," he said.

He further said: "This is more than a corporate exit. It’s a sobering signal of the environment our country has created.. one where even global giants like Microsoft find it unsustainable to stay. It also reflects on what was done (or not done) with the strong foundation we left behind by the subsequent team and regional management of Microsoft."