Microsoft's joint venture, Wicresoft, has halted its operations in China due to rising trade tensions between the U.S. and China, resulting in the layoff of 2,000 employees. This move could lead to the suspension of Microsoft's post-sales support services for its Windows and Office products in the Chinese market.
Microsoft had been offering many of its services through Wicresoft. With the intensifying trade war between the U.S. and China, along with increasing competition from Chinese rivals, particularly Kingsoft, Microsoft decided to withdraw Wicresoft from the Chinese market. In a letter sent to the laid-off employees, the company emphasized that geopolitical changes and shifts in the global business environment were key factors in this decision.
Wicresoft, established in 2002, was Microsoft's first joint venture in China. The company, which has over 10,000 employees worldwide, also operates in the U.S., Europe, and Japan. Earlier this year, Microsoft closed its Shanghai laboratory, which had focused on the development of Internet of Things (IoT) and artificial intelligence technologies.
