• Microsoft's joint venture Wicresoft will halt its operations in China effective April 8, leading to the layoff of approximately 2,000 employees. This decision aligns with Microsoft's strategy to discontinue outsourcing after-sales support in China, raising concerns about how the company will manage its services for users of Windows and Office products in the region. The closure reflects a broader trend of U.S. tech companies reassessing their presence in China amid escalating political and trade tensions between the U.S. and China.

• The shutdown of Wicresoft signifies a significant retreat from the Chinese market for Microsoft, which has faced increasing competition from local firms like Kingsoft. This move follows the earlier closure of a Shanghai lab focused on IoT and AI technologies, indicating a strategic shift in Microsoft's approach to the Chinese market. The layoffs will primarily affect the outsourcing team, which has been a critical part of Microsoft's operations in China since Wicresoft's establishment in 2002.