Microsoft will 'scale down' its operations in Russia

Microsoft previously halted sales in Russia following the invasion of Ukraine, and now it's shrinking its presence in the country. The company told Bloomberg in a statement that it will "significantly scale down" its Russian operations in response to a bleaker economic forecast stemming from the war. Microsoft will still honor its contracts in the country, but the reduced footprint will affect over 400 employees.

The Windows creator said it was "working closely" with affected staff to provide support. There was no mention of which segments would be impacted. It was also unclear how many people the company employed in Russia before the announcement. We've asked Microsoft for comment.

This isn't the first major tech company to withdraw at least some of its business in Russia in response to the war. IBM is now winding down its operations after suspending them in March, while software giant SAP said in April that it would exit the country entirely. Other firms, such as Amazon and Apple, have limited some or all of their sales.

This isn't a huge sacrifice for Microsoft. The developer said in March that Russia accounted for less than one percent of its revenue, and its local business had been in a steady decline over the past few years. Even so, it wouldn't be surprising if the cutback prompted similar moves from tech peers either showing support for Ukraine or concerned about their Russian sales prospects.