Xbox One

Microsoft announced an additional 3,000 job cuts last week, bringing the total number of layoffs to 18,000. While the software giant did not give out specifics on what business units are being downsized, a report out of Shenzhen Business News suggests that the cutbacks include the entire Xbox R&D division in China.

The decision to shut down the division was out of a need to bring the Xbox R&D unit back to the US. The publication states that most employees were not given advance warning about the upcoming layoffs, and that most of them were contacted by the human resources team on Friday informing them of the closure of the division, which has over 80 employees.

"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 employees were offered a severance package of about $2,560 along with one month's salary to sign the dismissal agreement. According to anonymous sources speaking to the publication, that number was far lower than what is dictated by Chinese labor laws. Should employees choose to not sign the agreement (and it looks like no one has), it is being reported that Microsoft's legal department would get in touch with them directly and "everything will be done in accordance with the Chinese laws."

What are your thoughts on Microsoft shuttering its Chinese Xbox R&D division?

Source: Shenzhen Business News; Via: ZDNet