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Microsoft to sell Xbox production facility to Flex
Microsoft has reportedly sold its manufacturing facility in Manaus, Brazil to Flex – formally Flextronics – as the company withdraws its presence from the city.
The value of the deal was not disclosed. Flex will take over the manufacturing of Microsoft's smartphones and the Xbox 360 and Xbox one consoles, according to a report in Brazilian Tele.Síntese.
The sale of the facility is a result of the company's global restructuring in which the company aimed to reduce costs – which included a revaluation of assets acquired from Nokia, as well as layoffs.
The company claims that the employees at the Manaus facility will receive all necessary support for the transitional period, the report continues.
In a statement to the paper, Microsoft explained that the company were looking for ways to increase the efficiency in its operations. And that after consideration the company decided to appoint Flextronics as its manufacturing partner for Xbox and smartphones in Brazil from January 2016.
