The company, however, said it would fulfill its existing contractual obligations with Russian customers, while the suspension of new sales that was announced earlier in March remains in effect.
“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,” a Microsoft spokesperson said.
Bloomberg News, which first reported the news said more than 400 employees will be affected.
Several major companies, including Apple Inc, Nike and Dell Technologies, have severed ties with Russia.