Layoffs: Another Tech Firm Limits Operations In China, Cuts Over 1,000 Jobs. Find Out More
IBM Layoffs: The firm shut down its R&D operations in China, following several names in the tech industry scaling back their operations in the country in light of the increasing tensions with the US
IBM Layoffs: IBM has reportedly closed its research and development (R&D) operations in China, as the firm tries to reduce its presence in the country amidst geopolitical tensions. The decision to shut down the R&D departments in China follows several big names in the tech industry scaling back their operations in light of the global challenges, media reports said.
A report by South China Morning Post, a Chinese media publication, revealed that IBM has closed the shutter on its China Development Lab and China Systems Lab. This has left more than 1,000 employees in regions like Shanghai, Dalian, and Beijing without jobs.
The R&D staff of the tech company located in China were unable to access the firm’s intranet and other services over the weekend, reported the Times of India.
The report quoted posts from several employees on social media platforms in China and said that IBM informed the employees about the job cuts during an internal meeting on Monday morning.
The tech firm, based out of the US, confirmed the layoffs, however, didn’t share any further details about the job cuts. The Post cited an email shared by a representative from IBM and said, “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.”
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The representative further noted that the tech firm is trying to have the ‘right teams with the right skills’ to facilitate domestic companies in China, particularly private ones, to develop hybrid cloud and artificial intelligence in partnership.
The firm informed that it will now cater to private entities and certain multinationals operating in the country. Notably, increasing tensions between the US and China has resulted in multiple firms limiting their physical presence in the Asian country and letting go of their employees based in the area.
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