Microsoft’s joint venture Wicresoft to shut down in China, putting 2,000 jobs at risk

Microsoft's long-standing joint venture in China, Wicresoft, is set to cease operations starting Tuesday, potentially affecting around 2,000 employees, according to Chinese news outlet Caijing. Most of those impacted are part of Microsoft’s outsourced after-sales support team in China.

This significant move has sparked uncertainty about how Microsoft will continue to support Chinese users of its flagship products like Windows and Office. A screenshot of an internal email suggesting a broader exit by Microsoft circulated online, but the company has since clarified that the closure pertains solely to Wicresoft. A Microsoft spokesperson confirmed to Reuters that the company is not pulling out of China and that the internal communication was misinterpreted.

Wicresoft, founded in 2002 as Microsoft’s first joint venture in China, has grown to employ over 10,000 people worldwide, with operations in the U.S., Europe, and Japan. However, the company has yet to release an official statement about the shutdown or the reported layoffs.

This development comes as Microsoft appears to be steadily scaling back its presence in China amid ongoing geopolitical tensions, strict regulatory scrutiny, and stiffening competition from local tech firms like Kingsoft. In a previous move, Microsoft had also closed a Shanghai-based lab focused on AI and IoT innovations, highlighting its gradual retreat from certain Chinese operations.