IBM to shut down research labs in THIS country, will layoff 1000 employees: Report
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.
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FollowIBM 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. Over 1,000 workers in places including Beijing, Shanghai, and Dalian are being laid off as a result of IBM closing its China Development Lab and China Systems Lab, according to a report by a Chinese website.
The South China Morning Post reported that IBM's R&D employees in China were unable to access the company's intranet and services over the weekend. According to the report, which cited many employee posts on Chinese social networking sites, the Armonk, New York-based corporation formally disclosed the job layoffs on Monday morning during an internal meeting.
IBM has acknowledged the job losses, but it has not disclosed specifics on the layoffs. An IBM spokesman wrote to the Post, saying, "IBM adjusts 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."
By utilising its "considerable technology and consulting expertise," IBM's local strategy is "focused on having the right teams with the right skills" to assist Chinese businesses, particularly privately held ones, in co-creating hybrid cloud and artificial intelligence (AI) solutions. The representative was quoted as saying as much.
IBM will now provide services to private businesses and a few international corporations that are present 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.
Enterprises like as Ericsson, Tesla, Amazon.com, and Intel have all been affected, resulting in notable cutbacks in their workforce headquartered in China.
