In a significant move, IBM has reportedly shut down its research and development (R&D) operations in China, marking a notable reduction in its mainland presence amid escalating geopolitical tensions. The decision affects more than 1,000 employees across several major cities, including Beijing, Shanghai, and Dalian. The closure involves IBM’s China Development Lab and China Systems Lab, which were instrumental in the company’s local R&D efforts.
The South China Morning Post first reported that IBM’s R&D staff in China lost access to the company’s internal networks and services over the weekend, with formal notification of the layoffs occurring in an internal meeting on Monday morning. This announcement follows widespread posts on Chinese social networking sites, where affected employees discussed the abrupt changes.
The move is part of a broader trend among major tech companies scaling back their operations in China due to increasing geopolitical friction between China and the United States. Other companies such as Ericsson, Tesla, Amazon, and Intel have also made notable reductions in their Chinese workforce as a result of these tensions.
IBM’s revised strategy will now concentrate on providing services to private businesses and select international companies operating within China, shifting away from its previous expansive R&D commitments in the region.
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