In a surprising turn of events, Wicresoft, a long-standing joint venture between Microsoft and Shanghai partners, is pulling the plug on its China-based projects with the US tech giant. The decision, reportedly driven by mounting geopolitical tensions and shifts in the global business climate, has led to the layoff of around 2,000 employees—many of whom only learned of the news via a company-wide email on Monday. The move marks a significant moment for the Bellevue-headquartered firm, which has operated in China since 2002, delivering consulting and tech solutions across a wide range of industries.
Employees at Wicresoft’s Shanghai office, once a bustling hub of collaboration, were seen quietly packing up their desks, some still processing the abrupt news. “Our work related to Microsoft will be terminated,” the email read—leaving little room for ambiguity. Vincent Gao, who joined the company in 2020, confirmed the message and shared that Microsoft projects made up a large part of Wicresoft’s business. By Tuesday, those projects—and the jobs tied to them—were scheduled to come to a close.
Though Microsoft issued a statement denying reports that it is ceasing operations in China altogether, the sight of Wicresoft employees exiting their offices with packed boxes paints a different picture. The joint venture has long been a symbol of cross-border collaboration, with Microsoft still holding a 22% stake. Yet, as trade disputes escalate and tech alliances fracture, the fallout is increasingly being felt not in boardrooms but on the ground—among engineers, analysts, and consultants who now face uncertain futures.
Wicresoft’s retreat also follows Microsoft’s recent closure of its Internet-of-Things and AI Insider Lab in Shanghai—once a flagship for innovation in the city’s Zhangjiang hi-tech zone. With operations in 36 locations worldwide, Wicresoft has prided itself on its global talent base. That legacy now feels shaken, especially for the more than 200 non-Chinese employees at the Shanghai office, many of whom are left grappling with what comes next.
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(Source: SCMP | Seeking Alpha | Market Screener)
