Microsoft will slash its workforce in India and other developing countries by 4,700 people in the coming year, the company said in a filing with the U.S. Securities and Exchange Commission.
Microsoft’s India workforce is expected to shrink by 3,500 people.
The cuts are the latest blow to Microsoft in India, where Microsoft has been facing a fierce lobbying effort from India’s government and political elite.
The company is seeking to cut its Indian workforce from more than 8,000 employees to about 2,000 by 2021.
The layoffs would cost Microsoft nearly $7 billion, Microsoft said in its filing.
“Microsoft will continue to make investments in India to support the Company’s operations and our ability to innovate in the region,” Microsoft’s chief financial officer, David Sivak, said in the filing.
The filing does not include details about the workforce reductions, including details about job cuts, but Microsoft said it is looking to boost productivity and growth in India.
“We are working with our suppliers and partners to optimize our processes and processes for the delivery of our products in India,” Sivac said.
Microsoft had been facing an aggressive lobbying campaign from India in the past year and a half, with Indian lawmakers, academics and activists demanding that the company release information about its ties to Indian intelligence agencies.
Microsoft is also facing pressure from lawmakers to release information related to the company’s alleged ties to the government of the Maldives.
The government of Maldives says Microsoft is helping Maldives “to counter the global threat posed by the Indian Government.”
In its filing, Microsoft argued that its work in India would be more productive and that its India operations would help the company grow.
“To achieve this growth, Microsoft expects to invest $4.4 billion over the next three years to improve our products and services across our global operations in India through the development of new and enhanced software, products and business processes,” Siva Bharti, Microsoft’s global head of corporate development and operations, said.
“The investment will support our global teams in India as we grow our India operations, improve the quality of products and processes, and grow the quality and productivity of our employees,” Sivasan said.
The filings also show that Microsoft is planning to spend $3.8 billion to expand its offices in India over the coming years.
The move comes after the company reported a decline in the Indian smartphone market and a slump in revenue for the quarter that ended March 31.