[News] IBM Reportedly Confirms Closure of China R&D Division, Impacting Over 1,000 Employees

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IBM, following the closure of its China Research Laboratory earlier this year, is now facing fresh reports of layoffs in the region. According to Chinese media Jiemian News, over 1,000 employees across Beijing, Shanghai, Dalian, and other locations have recently had their access to IBM’s research and testing systems revoked. Affected staff have been notified to attend an online meeting on August 26.

Jiemian News reported on the 24th that several IBM China employees confirmed the access revocations occurred the previous evening. A lab technician noted that there were no prior warnings, with employees continuing their regular work hours—even working overtime—until the sudden access shutdown. Those impacted have been removed from the company’s product group chats and are unable to access the internal network via VPN, although they still have email access.

The affected employees are primarily from IBMV, which is under the IBM China Development Center and IBM China Systems Center, focusing on research and testing. The revocations span multiple cities, involving over 1,000 staff.

Jiemian News reached out to IBM China for comment, but no response had been received at the time of publication.

IBM has undergone several rounds of layoffs globally in the past two years. In January 2023, the company announced 3,900 job cuts, and later that year, it paused hiring while planning to replace nearly 8,000 roles with AI. Reports from March indicated some departments faced cuts as high as 80%.

IBM China has also seen layoffs over the past year. An internal employee noted that a product line at the China Development Center was axed last year, and some workers reported receiving layoff notices in March, with their departures finalized by late July.

In addition to the changes at IBM China, the Central News Agency reported that China’s economy is currently in a downturn. Earlier, online rumors suggested that Microsoft would close all of its physical stores across China starting July 1, leaving only its official online store and JD.com flagship store. A Microsoft spokesperson confirmed to the media that the company has decided to streamline its sales channels in China, and customers can still purchase products and access services through retail partners and the official website.

According to the latest report from China’s Yicai, IBM has confirmed it will completely shut down its R&D division in China, impacting over 1,000 employees. While IBM’s primary clients in the region have historically been large state-owned enterprises in critical sectors like finance and energy, the company now plans to shift its focus to serving private enterprises in China and select multinational companies operating there.

(Photo credit: IBM)