Microsoft’s first joint venture in China to halt ops: Report
In a shocking move, Microsoft’s first joint venture in China, Wicresoft, has decided to cease operations in the nation, effective April 8, as reported by Chinese media outlet Caijing. The decision is expected to lead to a significant number of layoffs, with approximately 2,000 employees, primarily from Microsoft’s outsourcing team in China, being affected.
Wicresoft, which was established in 2006, was a joint venture between Microsoft and China-based company, Wangsu Science and Technology. The company was responsible for providing after-sales support and services to Microsoft’s customers in China. The move to halt operations effectively ends Microsoft’s outsourcing of after-sales support in China, raising concerns about the future service for local users.
The news comes as a surprise, especially given the significant investment Microsoft had made in Wicresoft over the years. The company had reportedly invested hundreds of millions of dollars in the joint venture, which was seen as a key part of Microsoft’s strategy to expand its presence in the Chinese market.
The reasons behind Microsoft’s decision to halt operations are not entirely clear, but industry insiders suggest that the company may be looking to shift its focus towards more profitable areas, such as cloud computing and artificial intelligence (AI). Additionally, the increasing competition from local Chinese companies, which have been gaining traction in recent years, may also have played a role in Microsoft’s decision.
The layoffs, which are expected to be completed by the end of April, are likely to have a significant impact on the affected employees, many of whom have been with the company for several years. The news is also likely to raise concerns about the future of Microsoft’s presence in China, particularly given the country’s growing importance in the global technology landscape.
Microsoft has yet to officially comment on the matter, but industry insiders suggest that the company is likely to focus on its core business areas, such as cloud computing, gaming, and AI, going forward.
The implications of Microsoft’s decision to halt operations in China are far-reaching, and it’s likely to have a significant impact on the local technology industry. The move is likely to accelerate the growth of local Chinese companies, which have been gaining traction in recent years. Additionally, it may also lead to increased competition in the market, as other companies look to fill the gap left by Microsoft’s withdrawal.
In conclusion, Microsoft’s decision to halt operations in China, through its joint venture Wicresoft, is a significant development that is likely to have far-reaching implications for the local technology industry. The move is expected to lead to significant layoffs, primarily in Microsoft’s outsourcing team in China, and raises concerns about the future service for local users. As the technology landscape continues to evolve, it will be interesting to see how Microsoft’s presence in China develops in the future.
