Microsoft Corp’s joint venture Shanghai Wicresoft Co (微創軟件) is to cease its operations in China from today, a move that would lead to about 2,000 employees being laid off, Chinese media outlet Caijing reported on Monday, citing sources.
The move is in line with Microsoft’s decision to stop outsourcing after-sales support in China to Wicresoft, Caijing said, raising questions about how the US technology firm would service China-based users of its Windows and Office products.
The report said the closure would lead to layoffs mainly in the 2,000-strong Microsoft outsourcing team in China.
Photo: Tingshu Wang, Reuters
Wicresoft did not respond to a request for comment.
Microsoft is pulling back from the Chinese market amid growing political and trade tensions between Washington and Beijing, and stiff competition from Chinese rivals such as Kingsoft Corp (金山軟件).
Information technology services provider Wicresoft was founded in 2002 as Microsoft’s first joint venture in China, and it also operates in the US, Europe and Japan with a global headcount of more than 10,000, Wicresoft’s Web site says.
Microsoft closed a Shanghai laboratory focused on developing Internet of Things and artificial intelligence technologies earlier this year, the <
A screen shot of an internal e-mail circulated on Chinese social media on Monday, indicating Microsoft was shutting down its operations in China.
A Microsoft spokesperson said that this was inaccurate, while Caijing said it referred to Wicresoft..
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