Microsoft Shuts Down Office in Pakistan Amid Global Shift to Cloud-Based Service Model
The move is part of Microsoft’s broader global layoffs as the company pivots towards artificial intelligence (AI) and cloud computing.

After 25 years, Microsoft has shut down its office in Pakistan, attributing the closure to global restructuring and a transition towards a cloud-centric, partner-driven business model.
This decision coincides with the company’s largest round of layoffs since 2023, cutting approximately 9,100 jobs worldwide—around 4% of its total workforce—according to The Verge.
Microsoft never maintained a fully operational commercial office in Pakistan; instead, it operated liaison offices that served enterprise, education, and government sectors. In recent years, much of the business activities have shifted to local partners, while licensing and contract management have been handled through its European hub in Ireland.
Earlier media reports, sparked by a LinkedIn post from Jawwed Rehman, former head of Microsoft Pakistan, suggested that the global tech giant was formally ceasing operations in the country.
“Even global giants like Microsoft find it unsustainable to stay,” he posted on LinkedIn.
However, sources familiar with the matter told Dawn that Microsoft maintained a minimal physical presence in Pakistan until recently, with most of its operations already being handled through international offices and local partners.
In response to Dawn’s inquiry, a Microsoft spokesperson clarified that the company would continue serving its Pakistani customers through its robust partner network and nearby regional offices, a model successfully used in several other countries.
The move is part of Microsoft’s broader global layoffs as the company pivots towards artificial intelligence (AI) and cloud computing.
According to Reuters, Microsoft recently announced it would lay off about 4% of its 228,000 employees worldwide. In May, the company had already revealed plans to cut 6,000 jobs.
Microsoft stated that it aims to streamline operations with fewer managers while enhancing its products, processes, and organisational structure.
In a statement issued on Wednesday, Pakistan’s Ministry of Information Technology and Telecommunication noted that global tech companies are increasingly shifting from on-premises software deployment to Software as a Service (SaaS) models—Microsoft’s decision reflects this trend.
Technology expert Habibullah Khan explained that traditional on-premises models involve software installation on users’ own infrastructure, which requires significant upfront investment and ongoing maintenance. In contrast, the SaaS model allows companies to offer services via the cloud without needing a physical presence, earning revenue through subscription fees.
Khan emphasised that as technology evolves, more companies are moving towards SaaS to reduce costs and improve scalability.
The Ministry stressed that Microsoft’s decision should not be viewed as an “exit” from Pakistan but rather as a transformation towards a partner-driven, cloud-based service model.
In recent years, several multinational companies have either exited Pakistan or sold their operations to local entities. Just last month, ride-hailing service Careem announced it would cease operations in Pakistan from July 18.
However, Khan pointed out that Microsoft’s move differs from such market exits, as the company now derives almost all of its revenue from cloud-based subscriptions. He added that the decision aligns with global cost-cutting measures and the shift to SaaS and AI models, without casting any negative shadow on Pakistan’s tech ecosystem or economy.