Monday, December 30, 2024

IBM reportedly shuts down China R&D division

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IBM, or International Business Machines Corp, is reportedly shutting down its research and development division in China, affecting more than 1,000 staff at its Shanghai and Beijing offices.

The Big Blue is moving its China R&D functions to other overseas facilities, such as Bengaluru in India, Jack Hergenrother, an IBM executive, told employees at a virtual meeting on Monday morning, the Wall Street Journal reported, citing employees who attended the meeting.

“IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across China region,” IBM China said in a reply email to Shanghai Daily.

The company had cut off intranet access for Chinese employees in R&D and testing positions since the weekend, apparently without prior notice, Global Times reported.

Chinese companies, especially private firms, are increasingly focused on seizing the opportunities of hybrid cloud and AI technologies. IBM’s local strategy is to focus on having the right teams with the right skills to help them co-create those solutions, drawing on considerable technology and consulting expertise, the company added in the statement.

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