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Report: Microsoft Lays Off Xbox R&D Staff in China

Earlier this year, Microsoft announced a massive wave of layoffs with around 18,000 jobs to be cut worldwide. Among those, were 12,500 employees who became part of the company through Nokia’s devices and services acquisition.

Now, according to a report by Shenzhen Business News, Microsoft has axed the entire Xbox R&D department in China.

The decision was made due to the need of bringing this department back to United States. Sadly, the whole staff was not given any warning prior to these layoffs and the majority of the staff was contacted by human resources on friday, informing them of the division being shut down.

Xbox R&D division in China has around 80 employees and they were offered a $2,560 severance package in addition to one month’s salary in exchange for them signing the dismissal agreement.

One anonymous employee stated:

“Many of us did even did overtime last night. But the entrance cards were dysfunctional when we came to office this morning. And the agency workers got their cards confiscated in the afternoon.”

The amount offered to these employees in severance package is lower than that which is dictated in Chinese Labor Law. Furthermore, if an employee chooses not to sign the dismissal agreement, he/she will be contacted by Microsoft’s legal department and the matter will be handled according to the Chinese law.