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Microsoft Closes Pakistan Office Amid Global Shift to Cloud & AI
Microsoft shuts down its Pakistan office, laying off 5 employees. Shift to SaaS & AI cited, not an exit from the market. Services to continue via regional offices & partners.
ND
by News Desk
2025-07-05
Microsoft Closes Pakistan Office Amid Global Shift to Cloud & AI

Tech giant Microsoft has officially closed its physical office in Pakistan, laying off five employees as part of a broader global restructuring effort. The company emphasized that it will continue serving Pakistani clients through regional offices and its extensive network of local partners.

The development came to light after a LinkedIn post by former Microsoft Pakistan head Jawad Rehman went viral, claiming the company had officially closed operations in the country. In response, Microsoft clarified that while the on-ground office is being shut, its services will remain accessible and uninterrupted in Pakistan.

“We will serve our customers through both our strong and extensive partner organisation, and other closely located Microsoft offices,” a company spokesperson told Dawn, explaining that this model is already in use in several other countries.

The closure is part of Microsoft’s global cost-cutting strategy and transition to a Software-as-a-Service (SaaS) and AI-first operating model. Earlier this week, the company announced a fresh round of layoffs affecting about 4% of its 228,000 employees worldwide. In May, another 6,000 workers were laid off in a similar restructuring move.

Evolving Business Models

The Ministry of IT and Telecommunications clarified that Microsoft’s move should not be interpreted as a complete exit from Pakistan. Instead, it reflects a strategic global pivot away from on-premise operations to cloud-based delivery models.

Technology expert Habibullah Khan explained the underlying shift:

“On-premise software deployment is capital intensive and involves high upfront costs. In contrast, SaaS allows global companies to serve local clients without a physical presence.”

In the SaaS model, software is hosted in the cloud and accessed via subscriptions. This modern approach eliminates the need for costly data centers and on-site installations, making it a more scalable and cost-effective solution for both vendors and clients.

Microsoft, which now earns most of its global revenue through cloud-based services like Azure, is aligning itself more deeply with the AI revolution, streamlining operations, and reducing managerial layers.

Not the Same as Other Corporate Exits

Pakistan has seen an exodus of multinational companies in recent years, including Careem, which is set to cease operations on July 18. However, industry experts argue that Microsoft’s decision is not a reflection of Pakistan’s economy, but rather a tech-forward evolution of its business strategy.

“This isn’t an exit, but a reconfiguration,” Khan said. “Microsoft’s move is part of a larger global transformation towards cloud, AI, and subscription-based services.”

For Pakistani customers and businesses relying on Microsoft tools and platforms, services will continue as normal, albeit managed remotely or through local partners.

 
Tagged:

CloudComputing

MicrosoftPakistan

SaaS

AITransformation
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