BEIJING: On Monday (Aug 26), US tech giant IBM confirmed plans to close its research and development division in China.
Several employees informed AFP that during a brief meeting with US executives on Monday, they were notified about the decision to dismantle IBM's research and development team in China and relocate the operations to a different country.
When questioned about the restructuring, an IBM spokesperson stated, "IBM adjusts its operations as necessary to best serve our clients. These changes will not affect our capability to support clients throughout the Greater China region."
According to employees, the job cuts could impact over 1,000 positions in China, though the new location for the operations remains unknown.
"It was officially announced today," mentioned one employee, who wished to remain anonymous.
This employee, with a decade of experience at IBM, noted that "everyone stayed relatively calm... it feels more like a peaceful separation."
IBM has been operating in China for several decades, employing thousands across the country.
The company's research and development teams are stationed in multiple cities, including Beijing, Shanghai, and Dalian.
Over the weekend, members of these teams reported being restricted from accessing IBM's server.
Amid rising US-China tensions, numerous international companies have been either cutting jobs or relocating parts of their China operations.
In May, The Wall Street Journal reported that Microsoft had asked hundreds of employees in its cloud computing and artificial intelligence departments in China to transfer out of the country. This move was attributed to heightened scrutiny over its activities in China.
US companies in China have increasingly voiced concerns about what they perceive as an unfavorable business environment, citing inadequate protection for intellectual property and preferential treatment for local competitors.
These concerns were exacerbated last year following a sweeping crackdown on US consulting firms operating within China.
