Microsoft winds down its business in Russia, lays off more than 400 people

Microsoft suggests it is “significantly” scaling down its enterprise in Russia, extra than 3 months right after Russia invaded Ukraine. The software giant 1st pulled the plug on “new” product sales of items and expert services in Russia in early March, and now Bloomberg News stories that the enterprise is laying off 400 staff in Russia as it starts to wind down its company there.

“As a outcome of the adjustments to the economic outlook and the influence on our business enterprise in Russia, we have designed the choice to considerably scale down our functions in Russia,” suggests a Microsoft spokesperson in a statement to Bloomberg News. “We will keep on to satisfy our current contractual obligations with Russian clients even though the suspension of new revenue stays in result.”

Microsoft suggests it is “working carefully with impacted employees” in Russia, as 400 staff will be impacted by the company’s conclusion to wind down its company operations. It is not obvious how several employees now get the job done at Microsoft in Russia, and we’ve attained out to the corporation to remark. Microsoft CFO Amy Hood uncovered earlier this calendar year that Russia accounts for considerably less than one particular percent of Microsoft’s income.

Microsoft is not the very first massive multinational enterprise to suspend or wind down its small business in Russia. Lots of Western companies, including Dell, Apple, Nike, and Adidas, are severing ties with Russia, closing suppliers, or pausing income.