IBM is closing its research and development operations in China, a move that will affect more than 1,000 employees working at R&D laboratories and those focused on building and testing enterprise software and other products, The Wall Street Journal reported Monday.
During a virtual meeting, Jack Hergenrother, an IBM executive, told employees that the company is transferring its R&D operations to other facilities abroad amid the increasing competition IBM’s infrastructure business faces in China.
According to employees who were briefed on the move, IBM has started hiring engineers and researchers in Bengaluru, India, and other places abroad.
Some employees said the move the shut down R&D functions was a surprise after IBM executives recently discussed plans to pursue new business in China by leveraging the company’s capabilities in artificial intelligence and cloud computing.
IBM said in a statement that it “adapts its operations as needed to best serve our clients” and that the move would not affect the company’s ability to support customers in China.
According to WSJ, many multinational companies have reevaluated their business operations in China due to geopolitical tensions between the U.S. and the East Asian country.
