- Wicresoft has stopped managing Microsoft work
- Previously, it served as an important JV for Microsoft in China
- It is estimated that 2,000 workers have lost their job accordingly
Wicresoft, a Microsoft joint venture that allows the company to sell products and services in China, interrupts projects and dismissals workers.
The decision was communicated by e-mail to Shanghai based workers in Wicresoft, who have been informed that the work linked to Microsoft “will be finished” due to “geopolitical changes and changes in the global commercial environment”.
It is believed that around 2,000 workers will lose their jobs following changes of a blow not only for workers, but for the presence of Microsoft in the region.
Microsoft work includes most Wicresoft activities, citing a worker affected by the change, workers seen leaving offices with their property.
Microsoft remains an important shareholder of the company, representing 22% of the property.
A company listed by Shanghai and a state-of-the-venture capital company had 23% each of Wicresoft. The joint venture operates in around twenty cities across China, notably Shanghai, Beijing, Shenzhen and Hong Kong, but worldwide, it employs around 10,000 workers.
Microsoft said that rumors that he closed operations in China was inaccurate (via PK Press Club), however, the company recently closed its IoT and its initiate laboratory in Hi-Tech Zhangjiang of Shanghai. In addition, this decision reflects a broader trend in American-Chinese technological decoupling, largely caused by the escalation of trade tensions and reciprocal prices.
The scaling of operations raises questions about how Microsoft will witness its Chinese customers in the future, with a fairly large part of its footprint.
Techradar Pro asked Microsoft more information, but the company did not immediately respond.
Via Morning post in southern China
