Microsoft is closing its US manufacturing plant for the company’s Surface Hub. The software giant has been manufacturing and selling its 84-inch 4K displays for more than a year, but Microsoft is now moving its manufacturing efforts elsewhere. The Oregonian reports that 124 jobs will be cut from the Surface Hub plant in Oregon that was originally acquired alongside Microsoft’s acquisition of Perceptive Pixel back in 2012.
It’s not clear where Microsoft will move its manufacturing to, but it’s likely that the company will align it with other Surface products which are manufactured in China. Microsoft refused to comment on its manufacturing plans, but a spokesperson did confirm the plant closure in an email to The Verge. “We are consolidating our Surface manufacturing,” says a Microsoft spokesperson. “This will result in the closure of the Wilsonville, OR office and factory. We remain committed to the Surface Hub product line and will move forward with Surface Hub development in Redmond.”
Microsoft first announced its Surface Hub at a Windows 10 event in Seattle more than two years ago. The large displays were originally meant to ship in 2015, but they didn’t ship until March 2016. Microsoft sells two Surface Hubs, a 55-inch model priced at $8,999 and an 84-inch version for $21,999. Early reports suggest that Microsoft has largely sold out of its Surface Hubs, which either means the company didn’t manufacture enough of them, or demand was high. Microsoft says it remains committed to the Surface Hub, so expect to see the second version soon to compete with Google’s equally giant whiteboard.