Microsoft 'shutters JV operation in mainland'

Reuters and staff reporter

Microsoft's joint venture Wicresoft will cease its China operations from today, a move that will lead to the layoff of about 2,000 staff, Chinese media reported yesterday, citing sources.

A screenshot of an internal email leaked on the internet, meanwhile, indicated Microsoft shutting down its China operations, though the technology conglomerate denied the report.

The Wicresoft's closing is in line with Microsoft's decision to stop outsourcing after-sales support in China to Wicresoft, Caixin reported, raising questions about how the US tech giant will service China-based users of its Windows and Office products.

The report said the closure would lead to layoffs mainly in the 2,000-strong Microsoft outsourcing team in China.

IT services provider Shanghai Wicresoft was founded in 2002 as Microsoft's first joint venture company in China, and also operates in the United States, Europe and Japan with a global headcount of over 10,000, Wicresoft's website says.

An internal email screenshot circulated on Chinese social media yesterday, indicated Microsoft was shutting down its China operations.

However, Microsoft denied the news, saying any inquiries the business and operations of Wicresoft should be directed to the company itself.