Microsoft ends operations in Pakistan after 25 years

Microsoft has officially closed its operations in Pakistan, ending its 25-year presence in the country. The reason is the unstable situation in the region, which made further operations of the company unviable.

On July 5, 2025, Microsoft announced the complete closure of its Pakistani branch. The company’s first head of the region, Jawad Rehman, confirmed this on LinkedIn, adding that the last employees have been officially informed of the dismissal – a total of five people. He called the decision not just a corporate move, but “an alarming signal about the state of the country”, which, according to him, is no longer able to support even global companies. Pakistan’s Ministry of Information, in turn, called the move part of a “broader optimization of personnel” that is in line with the company’s global strategy.

The decision to exit the Pakistani market coincided with Microsoft’s global course to cut costs and refocus on artificial intelligence. In May, the company announced a 3% reduction in its workforce, and now plans to lay off another 4%, optimizing its staff against the backdrop of a multi-billion dollar investment in AI. In total, Microsoft had 228,000 employees over the past year.

Microsoft’s exit from Pakistan is not only a corporate optimization, but also a mirror for the country’s political and economic climate.

Even large international players may find the market incompatible with business if the state does not guarantee stability. The company promises to continue serving customers through a partner network and regional offices, as it has already implemented in other countries.