IBM Shuts Down China R&D Department, Impacting 1,000+ Jobs Across Beijing, Shanghai, Dalian

Aug 26, 2024, 08:36 AM

IBM is shutting down its research and development (R&D) department in China, affecting over 1,000 employees across Beijing, Shanghai, Dalian, and other locations. The decision is part of a strategic realignment towards higher-margin businesses such as cloud computing and artificial intelligence, as well as cost optimization. The company plans to shift some R&D functions to overseas locations, including Bengaluru. Despite the closure, IBM assures that its ability to support clients in China will not be impacted. This move is seen as part of a broader trend of U.S. technology companies retreating from the Chinese market. Employees affected by the closure are reportedly offered a severance package of "N+3."