IBM is shutting down research labs in this country, to layoff 1000 employees

IBM has reportedly shut down its research and development (R&D) operations in China, adding its name to a growing list of major tech companies scaling back their mainland presence due to geopolitical challenges. As per a report by a Chinese publication, IBM ceasing its China Development Lab and China Systems Lab, is resulting in layoffs of over 1,000 employees in cities like Beijing, Shanghai, and Dalian.
As per a report by South China Morning Post, over the weekend, IBM’s R&D staff in China was unable to access the company’s intranet and services.
Citing multiple employee posts on Chinese social media platforms, the report said that the company, based in Armonk, New York, officially announced the job cuts during an internal meeting on Monday morning.

What IBM has to say

IBM has confirmed the job cuts, however, did not provide details of the lay-offs.
“IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across the Greater China region,” an IBM representative said in an email to the Post.
IBM’s local strategy is “focused on having the right teams with the right skills” to help Chinese companies – especially privately owned firms – co-create hybrid cloud and artificial intelligence (AI) solutions by drawing on its “considerable technology and consulting expertise”, the representative was quoted as saying.
IBM will now serve private enterprises and select multinationals operating in China going forward.

IBM latest company to shut operations in China

IBM is not the first company to cease operation in China. The development comes as tensions have been reported between China and the US over businesses.
Companies like Ericsson, Tesla, Amazon.com and Intel have also been impacted, with their China-based workforce experiencing significant reductions.