Microsoft dismisses all Xbox R&D staff in China: Report

American technology company Microsoft continues to downsize its global workforce by dismissing more than 80 employees at its Xbox research and development (R&D) department in China, as Shenzhen Business News reported on October 31.

The company convened a quick full-staff meeting in the morning on the day before at its headquarters in Shenzhen, and made the sudden announcement of closing the branch and pulling it back to the US.

According to an anonymous employee who spoke to the newspaper, Microsoft didn't contact anyone beforehand, and its human resource managers started right after the Friday meeting to speak to the workers and offer them a severance package of about $2,560 plus one month's salary, a number that most people refused to accept.

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SpinalRemains1381385d ago

Initially, MS was under the impression that their Chinese R&D department would work for peanuts.

Not the case.

Shut her down!

Ps4andxb11385d ago conn-ps4-manufacturers-caught-u sing-slave-labor-to-make-ps4s-s ource.453426679/

Not sure how much MS paid it's Chinese staff, but any company found guilty of slave labour needs to stop right now.

ABeastNamedTariq1385d ago

So, you're referring to Foxconn, right?

IIFloodyII1385d ago (Edited 1385d ago )

You are aware they also make the Xbones, right?.

5eriously1385d ago

Do Sony employ those people? Sure I take note that you wont be able to confirm that. Say hello to all the other "slave labour" technology products you own as the only reason about everything is manufactured in China are because of their cheap "slave" labour.

Ps4andxb11385d ago

There's something wrong with 14+ disagrees when they're disagreeing that slave labour is wrong.

What's up people on here?

Did i come to the wrong gaming site?

donthate1385d ago (Edited 1385d ago )

It is likely easier to abuse employees in China, but these are highly educated individuals that know their rights, and is sought after even in China. At a minimum, they are well taken care of.

This isn't assembly line workers!

Remember in the big cities of China, it is almost no different than big cities in the US, except for the huge gap between poor and rich.

zeuanimals1385d ago (Edited 1385d ago )

You got disagrees because you're implying that Sony's the only one that uses Foxconn's services when literally every electronics manufacturer uses their services (including Microsoft). If nobody used Foxconn's services, everything would be atleast a couple hundred dollars more expensive.

There's an upside and a downside to everything, you dislike paying $500+ for consoles, then you're gonna have to just live with the fact that Foxconn does what it does. If you truly have an issue with Foxconn and want them to be closed down, then you're a hypocrite or you really don't have a problem with them because pretty much everything you use was made by them, including the two consoles in your username.

theshonen88991385d ago

@Ps4andxb1 They're disagreeing about the link unfairly singling out Sony when Foxconn sources almost every electronic in existence. That being said, Foxconn is evil and needs to die.

dreamed1385d ago

Well thats every company in the world then.

indyman77771385d ago

They both need to stop now! Both of them! They both have slave labor, and high paying labor. But the slave labor must stop. Sickening SHAME!

On another note, at the end of the article it points out that Microsoft's Global goal is to lay off 18,000 employees! That's a lot even for Microsoft. Earlier this summer I heard Microsoft say a certain layoff did not affect xbox (Just xbox employees). But every time I read an article it makes me think twice about getting a cheap xbox one this Christmas for Sunsetoverdrive. Microsoft has already shut down an xbox one production plant.

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shloobmm31385d ago

Looks like the reasoning is to move it back to the states.

christocolus1385d ago

Yup,youre correct. its even stated in the article so i wonder why people are disagreeing with you?

G20WLY1385d ago (Edited 1385d ago )

^People are disagreeing because that isn't the reasoning. It's a by-product. The reasoning, as is usually the case with restructuring, is to streamline and reduce expenditure.

If you have neighbouring departments in the US and you can cut the workforce by enough, you can afford to relocate the jobs to US which would make more sense logistically.

The way MS is going about this is disgusting though:

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

What's more, they're trying to get away with massively underpaying the due severance to these people and they didn't offer them the required notice. Luckily, all employees were smarter than MS credited and none have signed the paperwork, meaning MS will be forced (under Chinese labour contract law) to pay them the due amounts. :)

Eddie201011385d ago

It is also stated that they working toward their goal of of getting rid of 18,000 jobs globally. Guess some people missed that part.

indyman77771385d ago

Shloobmm3, it stated to move it back to the states the question is do you believe the excuse?

It would be a reasonable thing to believe if you didn't pay attention to the fact that they plan to layoff 18,000 employees world wide. The us in on the same planet, so that means that it does not matter where they move one, if they are cutting 14% of the entire companies workforce (18,000/128,076).

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Gaming247allday1385d ago (Edited 1385d ago )

"More than 60 percent of the employed are agency labour, and their contracts are signed with a third-party company."

These arent even real Microsoft employees, they are contracted to work for Microsoft by a third party company, which is not how i imagine Microsoft or any Company in the tech business likes to operate, seems like fat trimming to me

edit: Sony should consider trimming some fat as well considering their entire Company posted a loss for the year, so Sony fanboys just be quiet

G20WLY1385d ago (Edited 1385d ago )

It's always sad to hear of people losing their jobs, so you can save your fanboy nonsense ^"Gaming247".

Microsoft were scheduled to cut another 3,000 jobs late October as well. Either it's been kept quiet or it's imminent. :(

98xpresent1385d ago (Edited 1385d ago )

this came out of nowhere. Better stop wasting $$$ on timed dlc and go the Nintendo and Sony route

polloloco1385d ago

but but xbox is doing fine.

Xbot11385d ago

They are doing fine...

OUROSMAG1385d ago

They are, but the xbox division is expensive even for MS.

Xbot11385d ago

I mean doing fine compared to Sony. Cuz bankruptcy yo!

jdaboss1385d ago

Microsoft is doing a HELL of a lot better than Sony right now overall.. Sony is damn near junk status now.

Mechanism1385d ago (Edited 1385d ago )

Let me ask you a question, yo..

Which is more likely to stay afloat in the business sense as a product:

A. A product that is proving to be the most important asset and profiting for a company that is struggling in some areas right now, even though through assets, remains a huge business organisation and is unlikely to go bankrupt. (PS4)

B. A product that is not performing nearly as well as the company (which is otherwise doing very well) on a whole would have expected, which in turn has made shareholders question their input, with large expenses within that sector. (XBONE)

There is a lot more chance of the XBONE being abandoned than the PS4..

You just said the XBOX division is doing fine compared to Sony, you're trying to compare a division within a company, to a whole company.. Pretty stupid.

Use that brain cell.

Revengeance1385d ago

You're comparing Xbox to Sony as a whole?


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jrshankill1385d ago (Edited 1385d ago )

Doing a helluva lot better than Sony when it comes to profits.

Like.. Billions better.

Disagree all you want, it's fact.

Predaking771385d ago (Edited 1385d ago )

You don't seem to know the difference between Microsoft as a whole company and the Xbox division, Sony as a whole company and the PlayStation division.

If you compare the Xbox and PlayStation division, I asumme we are here because GAMING, the PlayStation division is doing a lot way better than the Xbox brand, generating more profits and dominating market.

But because the Xbox brand is not enough and is lacking, the fanboys have to call in the whole Microsoft company in order to not look that bad and pretend Xbox is "doing fine"

Death1385d ago (Edited 1385d ago )

In the last reported quarter Sony's gaming division made 200 million in profit to Microsofts 500 million in profit in their gaming division. Surface and PC accessories are part of Microsoft's gaming and hardware division so it isn't exactly a direct comparision.

Revenue for each division is 2.8 billion for Sony and 2.5 billion for Microsoft in the same quarter.

ashen1221385d ago

so they are giving up on china? damn hope those people can find new jobs soon.

MrSwankSinatra1385d ago

They're not giving up on china, they're closing their chinese branch.

shloobmm31385d ago

They are simy moving the chinese research and development branch back to the states.

beerzombie1385d ago

the chinese still everything you should never do rnd there.
This is a smart move never let them see your assets they were probably stealing and giving everything to Chinese companies.

memots1385d ago

R&D means "research and development" it doesn't mean they are stopping to sell the console to the Chinese market.

Sarick1385d ago (Edited 1385d ago )

In the conspiracy side I recall reading news. This news was about China requiring that all R&D done by international companies must recognize that innovations developed *inside* China are to be reserved as Chinese intellectual property under it's governments export laws.

Look up.
Doing Business in China.

Not sure if this is totally true but it would be a valid reason to ditch R&D in China. If I owned an international company. I'd want to keep my tech at home.

dreamed1385d ago

Chinese ip.....thats a bit rich coming from a country that dosnt recognise international copyright law.

Spotie1385d ago

You know, now that you mention it, I also recall hearing something like that. That's a good point you've brought up, and would be a massive reason to close up shop.

Still, sucks for those whose jobs were unceremoniously deleted.

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SynestheticRoar1385d ago

Sucks to get canned around the holidays.

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