Microsoft announced that they will formally shut down manufacturing plants in Beijing and Dongguan in the first quarter of 2015, which will cost over 1,000 jobs.

Microsoft officially informed employees in the two factories on December 17, 2014, and the company plans to complete the adjustment in the first quarter of 2015.

Compensation plan provided by Microsoft is "N+2" and year-end awards. N equals to the years of service in the two factories. Employees from the two factories revealed that Microsoft asked them to sign the agreement by January 6, 2015. If the employees do not accept the agreement, Microsoft will unilaterally terminate the labor contract and pay compensation based on legal standards.

Many employees reportedly cannot accept the compensation plan and are implementing negotiations with Microsoft. However, their demand for more compensation has not yet received any response.

In July 2014, Microsoft announced a global layoff plan, which aimed to cut 18,000 employees worldwide and about 12,500 of them were from device and service departments of Nokia. In August 2014, about 1,500 research and development staff who worked for Nokia Beijing left the company.