Microsoft's Russian office downsizes

A switch to cloud tech, coupled with a drive to use local software and a decline in revenue, has led to the downsizing of Microsoft's Russian business.

Over the last few years, Microsoft's Russian staff have been cut by more than two thirds, while another 10% to 15% of personnel are expected to leave shortly, Russian business daily RBC reported, quoting an unnamed market source.

"The company has been downsizing [its Russian office] for quite a while," the source said. "In 2014, the local office had a staff of roughly 1,000, and by now it has declined to about 300."

RBC reports that Microsoft's Russian business has substantially transformed over the last few years, which led to several waves of layoffs. The first significant personnel cuts occurred between 2013 and 2017 as the company regrouped its Russian operations, and some of the tasks previously handled locally were transferred to European offices. For instance, support for products aimed at small and medium-size businesses (SMEs) is currently run out of Ireland.

"Between 2017 and 2019, the company cut another 15% of its personnel, and the cuts were primarily accounted for by sales, marketing and service, as the business structure was optimised," RBC's source said, adding that Microsoft was forced to let go some of its personnel due to a decline in sales, which, in turn, was partly triggered by the Russian government's policy of encouraging public sector organisations to switch to locally manufactured software.

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