Microsoft scales down Russia operations as Ukraine crisis clouds outlook

Microsoft Corp. is substantially reducing its business in Russia, joining the list of prominent technology firms cutting back or exiting the country altogether after the Russian invasion of Ukraine.

“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,” the company said in an emailed statement. “We will continue to fulfill our existing contractual obligations with Russian customers while the suspension of new sales remains in effect.”

More than 400 employees will be affected, a company spokesperson said. “We are working closely with impacted employees to ensure they are treated with respect and have our full support during this difficult time,” Microsoft said in the statement.

In March, the company suspended new sales of products and services in Russia but continued to support existing customers and maintain offices there.

US companies in tech and other fields have been winding down operations in Russia after Vladimir Putin’s invasion of Ukraine. IBM said it’s beginning to suspend its business operations there, a decision announced in March. Apple Inc. and Nike Inc. have halted sales. German business software maker SAP SE  said in April it’s taking steps toward an “ orderly exit” of its operations in Russia, with plans to stop offering support for on-premise products in the country while winding down cloud services.