Microsoft's Chinese joint-venture set to halt operations, lay off staff

Date:
Tue, 08 Apr 2025 13:03:00 +0000

Description:
Microsofts joint venture in China has halted operations, laying off 2,000 workers in the process.

FULL STORY ======================================================================Wicresof t has stopped handling Microsoft-related work Previously, it served as an important JV for Microsoft in China An estimated 2,000 workers have lost
their jobs as a result

Wicresoft, Microsofts joint venture that allows the firm to sell products and services in China, is reportedly halting projects and laying off workers, according to the South China Morning Post (SCMP) .

The decision was communicated via email to Wicresofts Shanghai-based workers, who were told that work related to Microsoft will be terminated owing to geopolitical shifts and changes in the global business environment.

Its believed that around 2,000 workers will lose their jobs as a result of
the changes in a big blow not just to workers but to Microsofts presence in the region. Wicresoft is pulling out of certain Microsoft-related work

The SCMP said that Microsoft-related work comprises most of Wicresofts business, citing a worker affected by the change. The publication also noted that workers had been seen leaving the offices with their belongings.

Microsoft remains a major shareholder in the company, accounting for 22% of ownership. A Shanghai-listed firm and a state-owned venture capital firm both own 23% each of Wicresoft. The joint venture operates in around 20 cities across China, including Shanghai, Beijing, Shenzhen, and Hong Kong, but globally, it employs around 10,000 workers.

Microsoft said rumors that it was shutting down operations in China were inaccurate (via Reuters ), however Redmond did recently shut down its IoT and AI Insider Lab in Shanghais Zhangjiang Hi-Tech Park. Moreover, the move reflects a broader trend of US-China tech decoupling, largely brought on by the escalating trade tensions and reciprocal tariffs.

Moreover, the scale down of operations raises questions on how Microsoft will service its Chinese customers going forward, with a fairly significant chunk of its footprint gone.

TechRadar Pro has asked Microsoft for more information, but the company did not immediately respond. You might also like Check out the best job sites and best recruitment platforms Make yourself indispensable with the best online learning platforms Arm wants to go direct Chinese market, no more ArmChina middleman



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Link to news story: https://www.techradar.com/pro/microsofts-chinese-joint-venture-set-to-halt-ope rations-lay-off-staff


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