Microsoft is finally pulling out of Russia, joining a long list of companies that are reducing their exposure or quitting their operations in Russia following its invasion of Ukraine.
Microsoft’s Plans
Microsoft however will be “making substantial cuts to its business in Russia”.
It will fulfill its existing contractual obligations with Russian customers, while the suspension of new sales announced earlier in March remains in effect.
A Microsoft spokesperson said that the move comes as a result of the changes to the economic outlook and the impact on its business in Russia.
Russian Employees Sacked
It has thereby decided to consider the “result of the changes to the economic outlook and the impact on [its] business in Russia.”
Russia accounts for less than one percent of Microsoft’s revenue.
More than 400 employees will be affected by this decision.
However, it will work “closely with impacted employees to ensure they are treated with respect and have our full support during this difficult time.”
IBM Winds Down Rus Ops
Rival IBM suspended its Russian operations in March after its invasion but employees were kept on the payroll.
Chairman and CEO Arvind Krishna later announced on May 30 that the company will go through an “orderly wind-down” of business in Russia and the local workforce will be laid off.
He did assure that IBM will continue to stand by them and take all reasonable steps to provide support and make their transition as orderly as possible.
He mentioned that “the consequences of the war continue to mount and uncertainty about its long-term ramifications grows”.
Hence, the decision has been made to orderly wind-down of IBM’s business in Russia, which will lead to “separation of our local workforce”.
Many Western companies, including Dell, Apple, Nike, and Adidas, are severing ties with Russia, closing stores, or pausing sales.