Microsoft's Major Pullback: Wicresoft Ceases China Operations

Microsoft's joint venture, Wicresoft, will halt its China operations, resulting in 2,000 layoffs. This decision aligns with Microsoft's strategy to discontinue outsourcing support to Wicresoft, amid rising tension between China and the U.S. and increasing local competition.

Microsoft's joint venture, Wicresoft, is set to end its China operations starting Tuesday, leading to the dismissal of roughly 2,000 employees, according to a report from Chinese media outlet Caijing.

This decision is part of Microsoft's broader strategy to cease outsourcing after-sales services in China to Wicresoft. The closure raises concerns regarding the continued support for China's users of Microsoft Windows and Office products.

As Microsoft navigates escalating trade tensions between the U.S. and China and faces competition from local companies like Kingsoft, the tech giant is withdrawing from the Chinese market. Despite this, a Microsoft spokesperson has disputed claims of shutting down its entire China operations, directing media to the specific reference of Wicresoft instead.

(With inputs from agencies.)