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

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By published

Wicresoft stops working with Microsoft

Microsoft Store logo on a blurred background
(Image credit: Microsoft)
  • Wicresoft 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, a Microsoft joint venture which allows the firm to sell products and services in China, is reportedly halting projects and laying off workers.

The decision was communicated via email to Wicresoft’s 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.”

It’s 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 Microsoft’s presence in the region.

Microsoft-related work comprises most of Wicresoft’s business, citing a worker affected by the change, with workers 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 the company did recently shut down its IoT and AI Insider Lab in Shanghai’s 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.

The scaling-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.

Via South China Morning Post

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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