Microsoft’s joint venture in China, Wicresoft, is scheduled to close its operations starting April 8, leading to the loss of around 2,000 jobs. This decision is part of Microsoft’s strategy to stop outsourcing after-sales support activities in the country. According to a report from Chinese media outlet Caijing, this move will significantly affect Wicresoft’s workforce, primarily the team responsible for customer support services.
The closure raises questions about how Microsoft will support its users in China who rely on popular products such as Windows and Office. The affected employees were part of Wicresoft, which has been a key player in providing these services for years.
This decision comes at a time of rising political and trade tensions between the United States and China, which may also be influencing Microsoft’s operations in the region. Additionally, the company has been facing tough competition from local firms like Kingsoft, especially in the software sector.
Wicresoft, established in 2002 as Microsoft’s first joint venture in China, operates globally, with over 10,000 employees across various locations, including the US, Europe, and Japan. Earlier this year, Microsoft also closed a lab in Shanghai that worked on emerging technologies like the Internet of Things and artificial intelligence.
Recently, a leaked internal email suggested a total shutdown of Microsoft’s China operations, causing a stir on social media. However, a Microsoft spokesperson clarified that the email pertained specifically to Wicresoft, not Microsoft as a whole.
As this situation unfolds, it remains to be seen how Microsoft will adjust its approach to serving its Chinese customers in light of these recent changes.
