IBM is shutting down research and testing business lines in China, affecting over 1,000 jobs. The company may shift R&D functions to locations like Bengaluru.
International Business Machines Corp. is shutting a key research division in China in a move which will affect more than 1,000 employees, it was reported. The company is shuttering two business lines that specialize in research & development and testing and will instead turn toward serving private enterprises and select multinationals operating in China going forward.
IBM logo is seen near computer motherboard in this illustration.(Reuters)
IBM joins a growing list of companies scaling back their ambitions for China as an economic downturn and increased regulatory scrutiny. Wall Street names such as Morgan Stanley have also shifted some operations abroad while foreign investment has slowed because of concerns Beijing is favoring local players.
IBM plans to move its Chinese R&D functions to offices elsewhere, the Wall Street Journal reported, citing an employee in the know.
The US company told some employees it’s adding engineers and researchers in places including Bengaluru, India, the Journal said, citing employees who were briefed on the matter.
News/Business/ IBM to cut 1,000 jobs in China, likely to move some offices to Bengaluru: Report
