IBM to cut 1,000 jobs in China, plans to open in India

IBM is closing a major research division in China, impacting over 1,000 jobs and moving to other locations, such as Bengaluru, India. The company is shutting down two business lines focused on research and development and testing. Instead, IBM will shift its focus to serving private enterprises and select multinational companies operating in China.

This decision aligns with a broader trend of companies reducing their presence in China due to economic challenges and increased regulatory scrutiny. Many Wall Street firms, including Morgan Stanley, have also moved some operations abroad, as foreign investment in China slows amidst concerns that Beijing is giving preference to local companies.

According to reports, IBM plans to relocate its research and development functions from China to other offices. The US company informed some employees that it is expanding its engineering and research teams in other locations, such as Bengaluru, India.

This move reflects the shifting priorities of international companies in response to the changing business environment in China. IBM’s decision to scale back its research division in China signals a strategic shift in how it plans to engage with the Chinese market. The focus will now be on supporting specific private and multinational enterprises rather than maintaining a broad research presence.

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As companies navigate the challenges of operating in China, including regulatory pressures and an uncertain economic climate, many are re-evaluating their strategies. IBM’s move is part of a larger pattern where global firms are reconsidering their roles in China and looking for growth opportunities elsewhere.