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

Illustration by Alex Castro / The Verge

Microsoft says it’s “significantly” scaling down its business in Russia, more than three months after Russia invaded Ukraine. The software giant first pulled the plug on “new” sales of products and services in Russia in early March, and now Bloomberg News reports that the company is laying off 400 employees in Russia as it begins to wind down its business there.

“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,” says a Microsoft spokesperson in a statement to Bloomberg News. “We will continue to fulfill our existing contractual obligations with Russian customers while the suspension of new sales remains in effect.”

Microsoft says it’s “working closely with impacted employees” in Russia, as 400 employees will be impacted by the company’s decision to wind down its business operations. It’s not clear how many employees currently work at Microsoft in Russia, and we’ve reached out to the company to comment. Microsoft CFO Amy Hood revealed earlier this year that Russia accounts for less than one percent of Microsoft’s revenue.

Microsoft isn’t the first big multinational company to suspend or wind down its business in Russia. Many Western companies, including Dell, Apple, Nike, and Adidas, are severing ties with Russia, closing stores, or pausing sales.