Indian Outsourcer Wipro has decided to shut down its development centre in Sophia Antipolis, France.

The company is said to have started consultation process with local employees. In an open letter the employees of Wipro-NewLogic, based at its Sophia Antipolis center in France, have said that the company has closed the centre and laid off its staff.

Wipro-New Logic development centre builds components and connectivity-based semiconductor intellectual property (IPs) in wireless and wire line segments that are used by customers in System on Chip (SoC) and ASIC designs.

However the 61 French staff wrote to the local media saying that they had been laid off after Wipro decided to stop all of its semiconductor activities in France and close the facility. Christophe Martinoli, head of France, Wipro Technologies, reportedly said in a statement that given the market conditions and the economic problems facing this business, it had to review its semiconductor IP portfolio.

It is all pretty niche stuff within Wipro's overall semiconductor business. After carefully considering all possible options, we have initiated a “consultation procedure” with the employee representatives in France in relation to the same.

Consultation procedure apparently now means telling staff they are fired. Wipro said that will continue to operate in France and in fact it plans to expand its operations in that country.