What you need to know
- Microsoft will "significantly scale down" operations in Russia.
- The move will affect more than 400 employees, which Microsoft says it is working to support.
- Microsoft will continue the suspension of new sales in Russia as well.
Microsoft will greatly reduce its operations in Russia, according to a statement sent out by the company (via Bloomberg). The tech giant is one of several companies to reduce their operations in Russia following the country's invasion of Ukraine. The change is due to the different economic landscape in the region.
“As a result of the changes to the economic outlook and the impact on our business in Russia, we have made the decision to significantly scale down our operations in Russia,” said Microsoft.
The move will affect over 400 employees, which Microsoft said it would support. "We are working closely with impacted employees to ensure they are treated with respect and have our full support during this difficult time," said the company.
In addition to reducing operations in Russia, Microsoft will continue its suspension of new sales in the country. That stoppage was announced back in March of this year by Microsoft President Brad Smith.
"Like the rest of the world, we are horrified, angered and saddened by the images and news coming from the war in Ukraine and condemn this unjustified, unprovoked and unlawful invasion by Russia," said Smith at the time.
While Microsoft will reduce its operations in Russia, it will honor its current contracts. “We will continue to fulfill our existing contractual obligations with Russian customers while the suspension of new sales remains in effect.”
The move will affect hundreds of employees, but it likely won't alter Microsoft's bottom line that much. The tech giant explained earlier this year that Russia accounted for less than 1% of its revenue (via Engadget). Microsoft's drawback could also pave the way for other companies to make similar moves.
Sean Endicott is the news writer for Windows Central. If it runs Windows, is made by Microsoft, or has anything to do with either, he's on it. Sean's been with Windows Central since 2017 and is also our resident app expert. If you have a news tip or an app to review, hit him up at firstname.lastname@example.org.
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