KARACHI, July 6 (TNF): Microsoft has closed its office in Pakistan and laid off five employees. Dawn News reported the development on Saturday.
Earlier, reports suggested the tech giant had exited Pakistan entirely. This stemmed from a LinkedIn post by Jawad Rehman, Microsoft’s former Pakistan head. He claimed the company “is officially closing its operations in Pakistan.”
Microsoft had maintained a small on-ground presence in the country. Most operations were managed from abroad or through local partners, sources told Dawn.
Responding to Dawn, a Microsoft spokesperson said the company will continue to serve customers through partners and regional offices. “We follow this model successfully in a number of other countries,” the spokesperson added.
The closure is part of Microsoft’s global layoffs and its shift towards artificial intelligence (AI). On Wednesday, the company announced plans to lay off nearly 4% of its 228,000 staff, Reuters reported. In May, Microsoft cut about 6,000 jobs.
The company aims to streamline operations, reduce managers, and simplify products and roles.
Pakistan’s IT Ministry said Microsoft’s move reflects the global shift from on-premises software to Software-as-a-Service (SaaS).
Tech expert Habibullah Khan explained the two models. On-premise software is installed on customers’ servers with high upfront and maintenance costs. SaaS is cloud-based and does not require on-ground offices. Companies earn through subscriptions, reducing initial costs.
Khan said Microsoft’s move aligns with its SaaS and AI focus. “It’s not a reflection on Pakistan’s tech ecosystem or economy,” he said.
The IT Ministry echoed that Microsoft is not exiting Pakistan but shifting to a cloud-based, partner-led model.
Over recent years, several multinationals have exited or sold operations in Pakistan. Last month, Careem announced it would leave Pakistan by July 18. But Khan stressed Microsoft’s decision is different due to its reliance on cloud revenue.
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