IBM disbands China R&D department, impacting 1000 jobs
The news comes at a time when the US and China are sparring over areas like semiconductors. Beijing is worried that restrictions on US technology could hamper the growth of Chinese companies like Huawei.
IBM is closing its China R&D department, a move that will impact more than 1,000 jobs, according to Chinese media outlet Yicai.
IBM, the world’s biggest technology services company, is facing a drop in demand for its hardware and challenges in important markets like China, Reuters reported.
The company is shuttering business lines specializing in R&D and testing. It will now focus on serving private enterprises and some multinationals operating in China.
The news comes at a time when the US and China are sparring over areas like semiconductors. Beijing is worried that restrictions on critical US technology could hamper the growth of Chinese success stories such as Huawei.
According to various reports, some jobs linked to IBM’s Chinese R&D functions may be moved to India.
During an artificial intelligence-themed forum held a few days ago, Hans Dekkers, general manager for IBM Asia Pacific, said that 2024 marked the 40th anniversary of IBM’s entry into the Chinese market, adding that he hoped the company would continue to take root in China for the next four decades and beyond.
