Microsoft has just announced that it is significantly scaling down its operations in Russia. The move comes after all new sales in the country had been suspended in March owing to the ongoing war in Ukraine.
Microsoft spokesperson claims that they made the decision owing to changes to the economic outlook and the impact on its business in Russia. It also stated that it continues to fulfill its existing contractual obligations with Russian customers while the suspension of new sales remains in effect.
According to Bloomberg News, over 400 employees will be affected by this move, although it''s unclear how many people is currently working for Microsoft in Russia. "We are closely working with affected employees to ensure they are treated with respect and have our whole support during this difficult time."
During the company''s third-quarter earnings call, CFO Amy Hood said Russia is responsible for less than 1 percent of Microsoft''s total revenues. She also added that expectations are that it will significantly decrease.
Yesterday, we learned that IBM is also starting to slay off personnel in Russia, although it blamed the move on the banking sanctions the country is facing instead. It appears that Russia will have to rely more on local and Chinese goods, as well as Taiwan''s exported chips to those under 25 MHz.