IBM Shuts Down China R&D Operations, 1,000 Jobs Affected

IBM is closing a major research and development facility in China, resulting in over 1,000 layoffs.

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IBM is shifting focus to supporting private and select foreign companies in China, while relocating R&D services to other international offices, including Bangalore, India.

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IBM’s decision is driven by increasing challenges faced by Western companies in China, including economic slowdown and government favoritism towards domestic tech firms.

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US-China tensions, particularly in tech sectors like AI and semiconductors, have made it difficult for American companies to compete in China.

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The pressure has led to a reduction in foreign tech companies in China, with many, like IBM, moving operations elsewhere.

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The layoffs and strategic changes were highlighted by local media, reflecting the difficult environment for foreign businesses in China.

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