Microsoft said it is “significantly downsizing” its business in Russia, more than three months after Russia attacked Ukraine. The “software giant” first withdrew its sales stoppage for “new” products and services in March, while the new sales suspension announced earlier this March remains in effect. at now. Now, Bloomberg News reports that the company is laying off 400 employees in Russia as business there begins to close.
However, the company said it will fulfill its existing contractual obligations with Russian customers. “Due to changes in the economic outlook and the impact on our business in Russia, we have made the decision to significantly reduce the size of our operations in Russia,” a Microsoft spokesperson said. “We will continue to fulfill our existing contractual obligations with Russian customers while the new suspension of sales remains in effect.” will be affected in this “reform”.
Microsoft said it was “working closely with affected employees” in Russia, as 400 employees will be affected by the company’s decision to shut down business. Microsoft CFO Amy Hood revealed earlier this year that Russia accounts for less than one percent of Microsoft’s revenue.
A growing list of IT companies sever ties with Russia
Dozens of the world’s biggest IT companies have severed ties with Russia and stopped operating and selling in the country since that country attacked Ukraine.
Just this week, IBM said it would stop doing business in Russia. IBM said the company expects no contributions from Russia in fiscal year 2022. “As the aftermath of the war continues to mount and uncertainty over its long-term ramifications grows, we I have now made the decision to orderly conduct IBM’s business in Russia. We see this move as both right and necessary and the natural next step after suspending business.” CEO Arvind Krishna said in a letter to IBM employees.
Other tech giants shutting down operations in Russia include Dell Technologies, HP Inc, Hewlett Packard Enterprise, SAP, DXC Technology, Accenture and many others.
The company suspended new sales in Russia in March at the start of the invasion, joining several other tech companies in excluding the country from technocrats. But at the end of March, Microsoft announced that it would not suspend cooperation with customers from Russia, but would continue to work with Russian schools, hospitals and a number of other organizations.
“Depriving organizations of these software and service updates could put the health and safety of innocent civilians at risk, including children and the elderly,” the company’s CEO said. Brad Smith said in March as quoted by Reuters.
Recently, Russian Prime Minister Mikhail Mishustin instructed the government’s digital development committee to prepare proposals by August 1 to replace foreign digital solutions with foreign software products. Russia and introduced measures to support domestic IT companies.
Even in April, Microsoft said it had disrupted cyberattacks carried out by an attacker with ties to Russia against organizations in Ukraine, the United States and the European Union.
Strontium – also known as Fancy Bear or APT28 – known for its links to the Russian government, has carried out attacks on media organizations in Ukraine, government organizations and think tanks. in the US and EU are related to foreign policy and other entities.
“We believe Strontium is attempting to establish permanent access to a target’s systems, providing tactical support for physical invasion and sensitive information theft,” Microsoft said in a statement. blog post at the time published by Tom Burt, corporate vice president of Microsoft. “We have informed the Ukrainian government of the activity we have detected and the action we have taken.”
According to Microsoft, Strontium and “nearly all of Russia’s national-state organizations” attacked Ukraine’s government and critical infrastructure.
“The attacks have not only systematically degraded organizations in Ukraine but also seeks to disrupt people’s access to reliable information, and vital life services on which civilians depend, while attempting to shake confidence in the country’s leadership “, Tom Burt said at the time. Microsoft also noted that “it is likely that the attacks they have observed are only a small part of the operation against Ukraine”.
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