News Summary

Microsoft has announced the closure of its operations in Pakistan after 25 years, citing a broader global restructuring and a shift towards a cloud-based, partner-led model. The company will now serve its Pakistani customers through resellers and nearby Microsoft offices. This decision is part of a wider workforce optimization program that resulted in a 4% reduction of Microsoft’s global workforce. The move affects five local employees, as Microsoft did not have engineering resources in Pakistan. The company had shifted licensing and contract management for Pakistan to its European hub in Ireland, with local partners handling daily services. This exit highlights challenges in Pakistan’s tech sector, which has not established itself as a major engineering outsourcing destination. Google’s recent investment in Pakistan contrasts with Microsoft’s exit, showing different approaches by global tech companies in the region.