Microsoft Corp said that in the current quarter it will close its retail stores and take a related $450 million pre-tax asset impairment charge.
The tech company headquartered in Redmond, Washington said it will continue to serve online customers, with team members operating remotely from corporate facilities.
A spokeswoman for Microsoft told that all existing retail workers will be offered an opportunity to remain in different positions with the company.
“Their diversity represents the many cultures we represent,” said Microsoft Corporate Vice President David Porter in a statement about the company’s retail employees. “Our commitment from this talent pool to expand and build careers is greater than ever.
The company also said it would reconsider other spaces serving all customers, including running Microsoft Experience Centers in London, New York, Sydney, and Redmond campus locations.
“It is a difficult but wise strategic move for Nadella & Co. (CEO) to take here. The physical stores created marginal retail sales for Microsoft and eventually, all pushed more and more into the digital platforms over the last couple of years.
Retailers, whose shops were closing down in mid-March due to coronavirus-prompted lockdowns, saw a significant rise in online demand in the midst of home-stay orders.
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