IBM's China chief under fire as 15-page letter circulating online accuses him of misconduct; company responds
By Shweta Kumari | First Published Oct 16, 2024, 1:36 PM ISTIBM, the global technology titan, has found itself embroiled in controversy as it launches an internal investigation into serious allegations against its China head, Chen Xudong. The probe follows a bombshell 15-page letter that has been circulating online, detailing accusations of misconduct involving Chen, chairman of IBM’s Greater China Group.
IBM, the global technology titan, has found itself embroiled in controversy as it launches an internal investigation into serious allegations against its China head, Chen Xudong. The probe follows a bombshell 15-page letter that has been circulating online, detailing accusations of misconduct involving Chen, chairman of IBM’s Greater China Group.
According to a report from Bloomberg News, a former IBM employee authored the explosive letter, accusing Chen of accepting illicit gifts, leaking sensitive company information, and violating IBM's strict expense policies. The allegations have garnered significant attention from Chinese media outlets, including Jiemian, amplifying the pressure on the company to take swift action.
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IBM responds
IBM has acknowledged the existence of the damning letter and emphasized the seriousness with which it is treating the situation. "We attach great importance to and thoroughly investigate any behavior that may violate the company's business code of conduct. We do not discuss the personal circumstances of employees and will continue to focus on serving customers in Greater China," stated an IBM spokesperson, signaling the company’s commitment to upholding its ethical standards.
Also read: IBM to shut down research labs in THIS country, will layoff 1000 employees: Report
Chen Xudong, however, has remained tight-lipped in the face of the allegations. When approached by Bloomberg News, he declined to comment, instead referring all questions to IBM’s communications team.
This latest upheaval comes as the company recently announced the closure of its hardware research team in China, a move linked to rising tensions between China and the West.
Also read: IBM employee on sick leave for past 15 years sues company for no salary hike
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