IBM Pulls Research Operations Out of China, Lays Off 1k Employees
IBM is closing its R&D operations in China, resulting in 1,000 layoffs due to competition and declining revenue. The company will relocate staff to countries like India amid US-China tensions.
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IBM is shutting down its research and development operations in China, leading to the layoff of approximately 1,000 employees. The decision is attributed to increased competition, a decline in business performance, and ongoing tensions between the US and China regarding technology firms. IBM's revenue from China dropped nearly 20% last year, prompting the company to reassess its operations in the region. The company's VP of global enterprise systems development confirmed the closure, noting that the infrastructure business has struggled in recent years. IBM plans to relocate R&D staff to other countries, such as India, while currently offering limited job opportunities in Japan, the US, and Singapore. The geopolitical climate has intensified, particularly after the US imposed restrictions on the export of advanced AI chips to China in 2022, which has led to retaliatory actions from China against US chip manufacturers. IBM's research focuses on areas like artificial intelligence, semiconductor research, quantum computing, and cloud technology.
- IBM is closing its R&D operations in China, resulting in 1,000 job losses.
- The decision is influenced by increased competition and declining revenue in the region.
- IBM plans to hire R&D staff in other countries, particularly India.
- Geopolitical tensions between the US and China are impacting tech operations.
- IBM's research areas include AI, semiconductors, quantum computing, and cloud technology.
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