WhatsApp Logo Subscribe
For News Alert

News

IBM to cease research and development operations in China amid strategic shift

By AFP

August 26, 2024 07:34 PM


Twitter Share Facebook Share WhatsApp Share

US computer giant IBM confirmed Monday it would close its research and development arm in China.

Multiple employees told AFP they had been informed during a brief meeting with US executives on Monday that the company would gut its research and development team in China and move operations to another country.

When asked about the cuts, an IBM spokesman told AFP: "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".

The employees said more than 1,000 jobs in China could be cut and it was unclear where the company would move its operations.

"Today it was just officially announced," said one employee, who declined to give his name.

The employee, who said he had worked for IBM for ten years, said "everyone remained relatively calm... it feels more like a peaceful separation".

The firm has operated in China for decades and employs thousands of people in the country.

Its research and development teams are based in several cities including Beijing, Shanghai and Dalian.

Members of those teams said they were blocked from accessing the company's server over the weekend.

US-China tensions have led to numerous international companies either laying off employees or relocating some of their China operations elsewhere.

The Wall Street Journal reported in May that tech giant Microsoft had this year asked hundreds of China-based employees in its cloud computing and artificial intelligence operations to transfer out of the country.

The move was motivated by increasing scrutiny over its China presence, the paper said.

US firms in China have increasingly complained about what they see as an unfair business environment, with limited protection for intellectual property and preferential treatment afforded to domestic competitors.

Those fears were compounded last year by a broad crackdown on US consulting firms operating in China.


AFP


Most Read

  1. Diljit Dosanjh invites Hania Aamir on stage during London concert, sings 'Lover' for her Diljit Dosanjh invites Hania Aamir on stage during London concert, sings 'Lover' for her
  2. Army soldiers guard Islamabad, Lahore sealed ahead of PTI protest Army soldiers guard Islamabad, Lahore sealed ahead of PTI protest
  3. Two Chinese nationals among three killed in Karachi 'suicide bombing' Two Chinese nationals among three killed in Karachi 'suicide bombing'
  4. Strong winds, rain lash most parts of Punjab, KP Strong winds, rain lash most parts of Punjab, KP
  5. Routine traffic on Lahore, Rawalpindi roads as almost all blocked routes reopened Routine traffic on Lahore, Rawalpindi roads as almost all blocked routes reopened
  6. Army colonel among 6 soldiers martyred, 6 terrorists killed in Waziristan clash Army colonel among 6 soldiers martyred, 6 terrorists killed in Waziristan clash