Wicresoft, the joint venture of Microsoft founded over two decades ago, is stopping operations in China starting today, that is, 8 April 2024, say media reports. The job cuts will mainly affect employees providing support services.
Microsoft had already decided not to outsource after-sales support to Wicresoft in China. The layoffs only further reflect Microsoft’s plans to close Wicresoft operations in the country. This will primarily impact the Microsoft outsourcing team in China, which has about 2,000 members.
While Caijing, the Chinese news media is the one that reported the layoff plans, there is, however, no official confirmation about the same from Wicresoft.
The move is said to be part of Microsoft’s intention to withdraw from the China market given the increasing tensions between China and the US, in terms of politics and trade. Additionally, there is stiff competition from the likes of Kingsoft and other software and service providers in China.
Wicresoft operates in the US, Japan and Europe as well, with a global team strength of more than 10,000.
As per Chinese media reports, it has not been long since Microsoft had shuttered a Shanghai lab—engaged in the development of artificial intelligence (AI) and Internet of Things— a couple of months ago.
