Microsoft will be permanently closing all of its retail store locations, the software company announced Friday morning.
The dramatic change comes as the company, who has experimented with remote work in response to COVID-19, learns that it is more effective and efficient to do business online than at brick-and-mortar stores.
“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” David Porter, Microsoft’s corporate vice president, said in a statement. “We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations.”
The tech company currently has 83 physical stores that are mainly in the United States. The closure of the stores will cost Microsoft a charge of $450 million in the third quarter.
While it appears that there may be layoffs, Microsoft has not confirmed the number of employees that will be impacted. However, many of the employees will be offered new roles within the company.
