Loading ...IBM China Shuts Down, Lays Off 1,800 Employees – Jennifer Zang
The U.S. computer giant IBM’s China investment company recently officially announced the cessation of operations, resulting in the collective unemployment of 1,800 employees in Beijing, Shanghai, and Dalian, with office equipment being rapidly dismantled.
Chinese media outlets Sina Finance and IT Home reported that IBM’s China investment company officially halted work and production on March 1, and the related office premises will also be discontinued.
This adjustment pertains to the IBM China System Center, a subsidiary of IBM China Investment Company (IBMV), primarily responsible for research and development and testing, with employees distributed across multiple cities nationwide, including Beijing, Shanghai, and Dalian, affecting more than 1,800 people.
According to an IBM insider, the Beijing office area of IBM China Investment Company, located in the Huanyu Building, is currently undergoing the removal of related office equipment.
The cessation of operations and staff layoffs at IBM China Investment Company are related to IBM China’s increasingly deteriorating performance.
According to financial reports, in 2023, IBM’s China market revenue declined by 19.6%, becoming one of the main reasons dragging down its revenue growth in the Asia-Pacific region.
In 2023, the Asia-Pacific region accounted for only 18.92% of its total revenue, far below the 51.19% from the U.S. market and also lower than Europe, the Middle East, and other regions.
In the first half of 2024, IBM’s China region sales fell again, declining by 5% year-on-year.
Photo: The IBM sign at the entrance of the IBM China System Center building in Beijing on August 26, 2024.
Great sign! No trumpet playing. That’s a first for me.