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Microsoft's Wicresoft to Shut Down China Operations, 2,000 Jobs at Risk

Microsoft

Business Honor
08 April, 2025

Tech giant scales back as geopolitical tensions impact global business strategies.

Microsoft’s joint venture, Wicresoft, is set to cease its operations in China, resulting in the layoff of approximately 2,000 employees. This decision aligns with Microsoft’s broader strategy to reduce its outsourcing footprint in China, particularly after halting after-sales support services provided through Wicresoft.

Founded in 2002, Wicresoft was Microsoft’s first joint venture in China and has played a key role in supporting Microsoft’s operations in the region. The company, which also has a presence in the U.S., Europe, and Japan, employs over 10,000 people globally. The closure will significantly impact the local workforce, primarily within the outsourced support teams.

This move comes amid escalating political and trade tensions between the U.S. and China, alongside increasing competition from local tech giants like Kingsoft. Microsoft’s decision reflects a strategic shift to adapt to the evolving regulatory landscape and competitive pressures in China’s technology sector.

While Wicresoft has not publicly commented on the closure, internal communications suggest a focus on streamlining operations to align with Microsoft’s global business priorities. Microsoft has confirmed that the shutdown pertains to Wicresoft’s operations, not its core business activities in China.

The company’s retreat from China follows the earlier closure of its Shanghai lab dedicated to IoT and AI research, signaling a strategic realignment of its operations in response to the region’s dynamic business environment.