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IBM shutters Russian operations, lays off staff after months of uncertainty

The firm ceased operations in March, but employees were kept on the payroll. "We chose to cease operations in order to explore longer-term possibilities while continuing to pay and support for our employees in Russia," the company said in the letter, the CEO stated.

IBM shutters Russian operations lays off staff after months of uncertainty gcw
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New Delhi, First Published Jun 8, 2022, 3:05 PM IST

Following a suspension on activity in Russia earlier this year, IBM CEO Arvind Krishna notified staff that the business is ceasing all operations in the nation and has initiated layoffs. Krishna wrote in a letter to workers that the company's priority for months has been to ensure the safety and security of IBMers and their families in afflicted areas.

The firm ceased operations in March, but employees were kept on the payroll. "We chose to cease operations in order to explore longer-term possibilities while continuing to pay and support for our employees in Russia," the company said in the letter, the CEO stated.

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"As the costs of the conflict increase and concern about its long-term repercussions grows, we have decided to conduct an orderly wind-down of IBM's operations in Russia," he continued. He stated that the corporation regards this decision as both right and essential, as well as a natural next step once the business has been suspended.

"This process begins today and will result in the separation of our local employees. Our Russian colleagues have been subjected to months of stress and uncertainty through no fault of their own," according to Krishna.

"We understand that this is terrible news, and I want to reassure them that IBM will continue to stand by them and take all reasonable efforts to give assistance and make their transition as smooth as possible," he added.

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IBM's decision to freeze operations in Russia resulted in a $300 million revenue loss in Q1 2022, which the firm comfortably overcame, bringing in $14.2 billion in sales and $622 million in profits. The company's software and consultancy operations grew by double digits, according to IBM.

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