Microsoft is shutting down its outsourcing company Wicresoft in China, leading to the layoff of 2,000 employees
Microsoft's Wicresoft joint venture will cease operations in China starting Tuesday.
Microsoft's Wicresoft joint venture will cease operations in China starting Tuesday.
This is reported by Reuters, citing the Chinese media outlet Caijing.
Microsoft has decided to stop outsourcing after-sales support in China to Wicresoft, raising questions about how the American technology company will serve Chinese users of its Windows and Office products.
The closure will result in the layoff of Microsoft's outsourcing team in China, approximately 2,000 employees.
IT services provider Shanghai Wicresoft Co. Ltd. was founded in 2002 as Microsoft's first joint venture in China and also operates in the US, Europe and Japan with a global workforce of over 10,000.
Microsoft is thus retreating from the Chinese market amid growing political and trade tensions between Washington and Beijing, as well as stiff competition from Chinese rivals such as Kingsoft.
Earlier this year, Microsoft also closed a Shanghai lab that developed Internet of Things and artificial intelligence technologies.
Trump's tariff war affects about 60 countries around the world, and with them technology companies, whose shares immediately reacted negatively to such changes. For example, Apple shares fell by about 7.5% in trading after the tariffs were announced, Meta and Nvidia by 5%, and Amazon by about 6%.
The gaming industry will also be affected. These measures will “have a real and detrimental impact” on game developers, the Entertainment Software Association (ESA) said .
On Friday, Trump said he was willing to roll back recent tariffs if other countries could offer something “phenomenal.” For example, China could get such relief if it approves a deal to sell a stake in TikTok to the United States.
With his new tariffs, Trump has cut off Americans from access to super-cheap goods from China. For Temu, this is a possible loss of over 180 million consumers, and for the US, such a change could cost up to $13 billion annually.
With his new tariffs, Trump has cut off Americans from access to super-cheap goods from China. For Temu, this is a possible loss of over 180 million consumers, and for the US, such a change could cost up to $13 billion annually.
