Microsoft scales down its Russia business after suspending sales of new products and services

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Microsoft scales down its Russia business after suspending sales of new products and services
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  • Microsoft slashes operations in Russia, affecting more than 400 employees.
  • Earlier, Amazon, Apple and IBM have limited their operations in Russia.
  • Starbucks and McDonald’s have already closed their stores in Russia
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Apple and Google aren’t the only tech giants pulling their services from the Russian market in response to the invasion of Ukraine. After suspending sales of new products and services in March, Microsoft is scaling down its business in Russia, joining the list of technology firms exiting or cutting business in the country.

In an emailed statement, the company said, “As a result of the changes to the economic outlook and the impact on our business in Russia, we have made the decision to scale down our operations in Russia significantly.”

Microsoft said it will continue to fulfil pending or existing contractual obligations with Russia.

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A company spokesperson said, “More than 400 employees are affected but we are working closely with the affected employees to ensure they get full support during this difficult time.”

Microsoft scaling down its business in Russia could also impact customers who rely on its cloud services such as Microsoft 365 and Azure, with the possibility of them losing access or the ability to renew their subscriptions.

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Also read: Google Russia has no money to pay salaries to its 100 employees, heads for bankruptcy

On Tuesday, IBM announced that they are winding down their operations, while Amazon and Apple have already scaled down their services in Russia.

Last month, Nike decided to not renew its agreement with its franchisee in Russia. Nike operates its business in the country with its subsidiary – Inventive Retail Group (IRG).

Following a similar move, Starbucks and McDonald’s have closed their operation in Russia affecting thousands of employees.

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