IBM is closing most of its research and development operations in China, affecting over 1,000 employees across its China Development Lab and China Systems Lab, Financial Times reports.
IBM cited intensified competition from domestic providers and a shrinking local infrastructure business as reasons for the cuts. The company faced a nearly 20% drop in sales from its China division in 2023, and the company has been reducing staff globally to improve profitability. Some Employees affected by the closure have been offered options for relocation or severance packages. IBM previously shut its Beijing-based China Research Lab in 2021.
This move is part of a broader trend of American companies reducing their presence in China amid escalating US-China tensions and competition from local Chinese firms. IBM’s decision follows similar actions by other US tech companies, such as Microsoft’s relocation of staff and the closure of LinkedIn in China.
