China Security Times (STCN) recently reported on an IBM internal decision stating that IBM China Investment Company (IBMV) and its branches will cease business activities starting March 1, 2025. Related office spaces will also be suspended.
IBM announced last August that it will withdraw all research and development work from China. The China System Laboratory work has been transferred to other IBM infrastructure bases overseas. The move this time only involves IBMV, which is mainly responsible for R&D and testing. The employees are located in many cities across the country, including Beijing, Shanghai, Dalian, etc., involving more than 1,800 people.
According to the financial report, IBM’s 2023 revenue in the Chinese market fell by 19.6 percent, becoming one of the main reasons for dragging down revenue growth in the Asia-Pacific region. In the first half of 2024, IBM’s sales in China fell again, down 5 percent year-over-year. In addition to R&D, IBM’s current business in China also includes consulting business (IBMC). According to information released by IBM last year, the number of IBMC Chinese customers has dropped by 45 percent in the past two years. Some IBM employees revealed that IBMC will also lay off employees this year.
Source: STCN, February 28, 2025
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