Microsoft Closes Business In Russia, Affects 400 Employees

Microsoft was forced to close its business in Russia. (photo: doc. unsplash)

JAKARTA - After stopping sales of new products and services in Russia in early March, Microsoft is now completely closing the company and laying off 400 of its employees in the country.

The decision was taken to reduce Microsoft's business in Russia, more than three months after the country invaded Ukraine.

"As a result of the changing economic outlook and the impact on our business in Russia, we have made the decision to significantly reduce our operations in Russia," a Microsoft spokesperson said in a statement to Bloomberg News.

"We will continue to fulfill our existing contractual obligations with Russian customers while the new sales suspension remains in effect." Due to this, as many as 400 employees will be affected by the company's decision to stop its business operations.

However, it is not known exactly how many employees currently work at Microsoft Russia. Microsoft's CFO, Amy Hood, revealed earlier this year Russia accounted for less than one percent of the company's revenue.

Most likely besides the invasion, Microsoft also sees its sales in Russia not as big as in other countries, aka a more bleak economic forecast. Microsoft is not the first major multinational company to suspend or discontinue its business in Russia.

Previously, many Western companies, including Dell, Apple, Nike, and Adidas, had cut ties with Russia first, closed shops, or stopped their sales there. This is quoted from The Verge, Thursday, June 9.