- Home
- Technology
- News
Microsoft to shut down office in Pakistan, lay off 5 employees
Decision to shift operations from Pakistan is part of company’s ongoing global layoffs as it shifts to AI


Microsoft has decided to close its office in Pakistan and lay off five employees, according to a media report.
Earlier, media reports had said that the global tech giant had shut down its operations in the country.
The reports were based on a post on LinkedIn by Javed Rehman (former head of Microsoft Pakistan), who claimed, citing sources, that the company was officially closing its operations in Pakistan.
It is also reported that Microsoft’s on-the-ground presence in Pakistan was intact until recently, although the local workforce was quite limited, with most of the company’s operations being run through overseas offices and partners in Pakistan.
A Microsoft spokesperson said that we will provide services to our customers through our strong and extensive partner organization and nearby offices, a model we have successfully implemented in many other countries around the world.
The spokesperson stated that the company will provide services through local partners and overseas offices.
The decision to shift operations from Pakistan is part of the company’s ongoing global layoffs as it shifts to artificial intelligence (AI).
On Wednesday, Microsoft announced that it was laying off 4% of its approximately 228,000 employees, according to Reuters. In May, the company announced the layoffs of 6,000 employees.
The company said it plans to run its operations with fewer managers and improve its products, processes, and roles.
Changing business models
In a statement issued on Wednesday, the Ministry of Information Technology (IT) and Telecommunication said that global tech companies are shifting from on-premises software deployment to the Software as a Service (SaaS) model, and Microsoft’s decision reflects the same shift.
According to technology expert Habibullah Khan, large software companies operate on two business models: on-premises and SaaS.
Under the on-premises model, the company installs and runs the software on the customer’s servers or infrastructure, while the hardware and data centers are maintained by the customer, with the company generating revenue from the sale of one-time licenses.
On-premises software deployment is a capital-intensive model and involves a high initial cost, while there are also recurring costs for maintenance and upgrades.
In contrast, the SaaS model allows the company to provide services at a specific location without a physical presence, as the software is hosted in the cloud, with the company generating revenue through subscription fees.
Habibullah Khan explained that with the evolution of technology, more companies have shifted to the SaaS model, which reduces initial costs.
Not an ‘exit’, change in service model
The IT ministry added that Microsoft’s move cannot be seen as an exit from Pakistan, but rather a shift towards a partner-based, cloud-based service model.
Over the past few years, several multinational companies in various sectors have either closed their operations in Pakistan or sold them to local entities. Last month, ride-hailing service Careem announced that it would shut down its services in Pakistan from July 18.
However, Habibullah Khan believes that Microsoft’s move is different from other companies’ withdrawals, as the company now earns almost all of its revenue through cloud-based subscriptions.
He added that the company is cutting costs globally, and the decision to close the office in Pakistan reflects a shift towards a SaaS and AI model, and does not have any negative impact on Pakistan’s technology ecosystem or economy.

The liver transplant system tried to fix its sex bias. Did it work?
- 16 hours ago

Hands-on with Amazon’s Alexa Tablet 12 Pro and its wild new matte display
- 18 hours ago

Two US cities could soon ban one of the world’s most controversial foods
- 16 hours ago

National Assembly passes resolution endorsing federal govt's imposition of emergency, governor's rule in KP
- 8 hours ago

CDF Munir reaffirms resolve to strengthen Pakistan-Russia ties
- 3 hours ago

Tim Cook says ‘I’m not meddling’ in the new Apple CEO’s business
- 18 hours ago

I only bought Pokémon Legends: Z-A during Prime Day, and it’s still on sale
- 18 hours ago
Gold prices decline after one day's increase in Pakistan
- 7 hours ago

Anthropic launches free AI security scans for open-source projects
- 18 hours ago

Nobel Peace Prize winner Navi Pillay blasts Trump's 'unlawful' sanctions against ICC
- 3 hours ago

Saudi-led coalition orders evacuation of Yemen oil facility in Sanaa ahead of operation
- a day ago

Pakistan, Oman vow to expand bilateral cooperation in multiple fields
- 5 hours ago










