Microsoft has announced it will be closing its South Korean research and development unit by the end of February.
This will result in 21 Seoul employees being relocated, as Microsoft moves its R&D facilities to Beijing, The Korea Herald reported.
Currently, 10 of those employees have been moved to the company’s headquarters in Redmond, Washington, but the remaining staff are yet to be redeployed.
“We believe it will not have much of an impact in our operations here since it did not belong to the Korean branch in the first place,” a Microsoft official said.
In an effort to be more competitive, Microsoft has decided to consolidate its R&D operations into six global centres, namely Redmond, Beijing, Cambridge, Bangalore, Silicon Valley and New England.
“The decision also shows that Microsoft’s US headquarters came to a conclusion that it will be better to set up the R&D control tower in China for the Asia region rather than in Korea, which is a comparatively smaller market,” an industry source said.