IBM to Close China R&D Department, Affecting Over 1,000 Jobs in Strategic Realignment

Aug 26, 2024, 06:41 AM

IBM is shutting down its research and development (R&D) department in China, affecting over 1,000 employees. The decision involves revoking intranet access for Chinese employees in R&D and testing positions across several development centers, including Beijing, Shanghai, and Dalian. IBM China, which has about 12,000 employees, will announce possible position changes around mid-week. This move is part of a strategic realignment towards higher-margin businesses such as cloud computing and AI, as well as cost optimization. IBM has assured that the changes will not impact its ability to support customers in China. The shift involves transferring R&D operations to overseas bases amid ongoing staff recruitment.