In the context: In March, Microsoft stopped selling new products in Russia due to the invasion of Ukraine. Now, the Windows maker will reportedly lay off more than 400 employees from its business in Russia, citing economic conditions in the country as the reason. The news came the day after IBM announced it was laying off all of its employees in Russia.

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Microsoft has just announced a significant reduction in operations in Russia. The move comes after the company suspended all new sales in the country in March due to the ongoing war in Ukraine.

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A Microsoft spokesperson claims they made this decision due to changes in the economic outlook and the impact on its business in Russia. The firm also said it continues to honor its existing contractual obligations with Russian customers while the suspension of new sales remains in place.

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More than 400 employees are reported to be affected by the move, although it is not known how many people currently work for Microsoft in Russia. “We are working closely with affected employees to ensure they are treated with respect and our full support during this difficult time,” Microsoft said in a statement. Bloomberg News.

During the company’s third-quarter earnings announcement, CFO Amy Hood said Russia accounts for less than 1 percent of Microsoft’s total revenue. She also added that it is expected to drop significantly.

Just yesterday we learned that IBM is also starting lay off staff in Russia, though she instead blamed the banking sanctions the country faced. In terms of technology, it looks like Russia will have to rely more and more on local as well as Chinese products like even Taiwan limitation its export chips for processors under 25 MHz.