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

By Mary B. Hill 1 year ago

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Microsoft claims it is “significantly” scaling down its business in Russia, extra than a few months immediately after Russia invaded Ukraine. The application big to start with pulled the plug on “new” sales of goods and expert services in Russia in early March, and now Bloomberg News experiences that the enterprise is laying off 400 workforce in Russia as it commences to wind down its small business there.

“As a end result of the changes to the financial outlook and the effect on our business enterprise in Russia, we have manufactured the choice to appreciably scale down our functions in Russia,” states a Microsoft spokesperson in a assertion to Bloomberg News. “We will go on to fulfill our present contractual obligations with Russian buyers though the suspension of new product sales continues to be in influence.”

Microsoft claims it is “working intently with impacted employees” in Russia, as 400 staff members will be impacted by the company’s final decision to wind down its organization functions. It’s not very clear how many employees now do the job at Microsoft in Russia, and we have attained out to the business to comment. Microsoft CFO Amy Hood exposed previously this year that Russia accounts for a lot less than 1 per cent of Microsoft’s revenue.

Microsoft is not the first massive multinational organization to suspend or wind down its small business in Russia. Numerous Western companies, like Dell, Apple, Nike, and Adidas, are severing ties with Russia, closing suppliers, or pausing revenue.

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