Microsoft’s joint venture with IT services provider Wicresoft will cease its operations in China starting Tuesday, resulting in the layoff of approximately 2,000 employees, according to a report by Chinese media outlet Caijing`citing sources.
The closure follows Microsoft’s decision to discontinue outsourcing after-sales support in China to Wicresoft, raising questions about how the tech giant will support users of its Windows and Office products in the region.
Founded in 2002, Shanghai-based Wicresoft was Microsoft’s first joint venture in China and has since expanded globally, with operations in the U.S., Europe, and Japan. The company currently employs over 10,000 people worldwide, according to its website.
The closure of Wicresoft’s China operations reflects Microsoft’s broader pullback from the Chinese market amid escalating political and trade tensions between the U.S. and China, coupled with increasing competition from local players like Kingsoft.
Earlier this year, Microsoft also shut down a Shanghai lab focused on Internet of Things (IoT) and artificial intelligence technologies, marking another retreat from its China operations.
While an internal email circulating on Chinese social media suggested Microsoft was shutting down all its China operations, a company spokesperson clarified that the email referred to Wicresoft, not Microsoft itself.
