IBM has been cutting staff since the beginning of last year, and the Chinese division was no exception. The layoffs began in late July, notices were sent to them in advance in March, and now almost 1,000 people instantly lost access to corporate information resources other than email. IBM is going to curtail its research activities in China.
Image source: IBM
As noted by Taiwanese and Chinese media, employees of the IBM research center in China suddenly lost access to corporate resources without any warning at the end of last week. They were encouraged to attend a virtual meeting scheduled for August 26, and earlier this week management told employees at IBM China that the company’s research activities in the country would cease, but that some research positions would open in India.
IBM’s main clients in China have so far remained large state-owned corporations, but now the American company prefers to serve private Chinese companies or representative offices of foreign corporations. Apparently, such steps on the part of IBM are aimed at minimizing the impact of US sanctions on its activities in China. Globally, IBM has also cut headcount multiple times over the past two years. In January 2023, it announced plans to lay off 3,900 people, with staff reductions of up to 80% in some areas. That same year, IBM stopped hiring and announced plans to replace up to 8,000 positions with artificial intelligence.