Why is Microsoft shutting down its operations in Pakistan after 25 Years?

Why Is Microsoft Shutting Down Its Operations In Pakistan After 25 Years

Tech giant Microsoft pulls out of Pakistan as the company announced laying off employees worldwide in new wave of job cuts.

The development stirred Pakistan’s tech and business communities as US multinational computer tech giant closing its operations in the country which started in 2000. Jawwad Rehman, the founding Country Manager of Microsoft Pakistan, shared development online.

He wrote “Just like that, an era ends,” confirming that the last remaining employees had been formally notified of the closure. He called this experience of establishing and leading Microsoft Pakistan as “not just a job, but a calling,” sharing vivid memories of the company’s early days, building a high-performing team, fostering customer relationships, and contributing to Pakistan’s digital growth.

Rehman highlighted several key achievements during his tenure, including arranging the first official conversation between Microsoft founder Bill Gates and then-President Pervez Musharraf, securing major grants from the Gates Foundation to combat maternal and infant mortality, setting up computer labs in underserved regions, and connecting young tech prodigy Arfa Karim with Gates himself.

His message raised serious concerns about country’s current business environment. “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,” he added.

Those familiar with development said move reflect broader issues, including economic instability, regulatory uncertainty, and declining investor confidence. He further questioned what changed over the years that made Pakistan less appealing to multinational firms, calling for a reassessment of national leadership, vision, and values.

Microsoft Cuts over 9000 Jobs, shuts Down Game Projects

The company co-founded by Bill Gates is laying off up to 9,100 employees which is about 4pc of its workforce in a new wave of job cuts. The company’s gaming division, including Xbox, is heavily affected.

Major changes include the closure of Perfect Dark developer The Initiative and job cuts at Forza Motorsport studio Turn 10. Microsoft-owned King, maker of Candy Crush, is also cutting 200 jobs.

Furthermore, projects like Perfect Dark and Everwild have been cancelled as the company shifts focus to streamline operations and target strategic growth.

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