Beijing, China, Wednesday, August 28, 2024- IBM has announced significant layoffs at its research and development teams in China, sending shock waves through the local tech community.
Over 1,000 employees across Beijing, Shanghai, and Dalian are expected to be affected by the closures of the China Development Lab and China Systems Lab.
The decision comes amidst a broader trend of intensifying trade war between the US led West and China.
Also IBM is seen in China as a prestigious employer for top engineering graduates in the country.
The layoffs were announced in a brief conference call, leaving many employees feeling disappointed and uncertain.
However, IBM cited ‘market dynamics’ and ‘competition’ as reasons for the cuts, the timing raises questions about the impact of the ongoing tech war between the United States and China.
China has been increasingly focused on self-reliance in technology, and the U.S. has imposed sanctions on Chinese companies like Huawei.
The layoffs are expected to be finalized by October 31st, 2024.
