IBM is the latest Western firm to retreat from China

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IBM is cutting more than 1,000 jobs in China, according to multiple state media reports, as geopolitical tension between Beijing and Washington prompts many global companies to reassess their future in the world’s second-largest economy.

Relations between the United States and China have deteriorated over technologies like artificial intelligence (AI) and green technology, in part due to national security concerns. Some firms have quietly laid off or relocated staff.

Yicai, a Chinese state-owned financial media outlet, reported on Monday that IBM (IBM) was closing its research operations in the country entirely. That included its China Development Lab, which opened 25 years ago in 1999, and the China Systems Lab, it said.

In a statement sent to CNN on Tuesday, the company declined to comment on the number of job losses or whether it would retain any research staff in China.

“IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across Greater China region,” it said.

Jiemian, another state-media outlet, wrote on Monday that the job cuts — which reportedly affected staff in Beijing, Shanghai and Dalian — were announced by Jack Hergenrother, an enterprise systems development executive.

He reportedly told staff that IBM’s infrastructure business in China was “in decline” and the research work happening in the country would be transferred to other labs. The Wall Street Journal reported that some of the work may be undertaken by the company’s labs in India.

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