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IBM closes R&D department in China, affecting more than 1,000 employees

2024-08-27

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[IBM China management also stressed that there are still huge opportunities in the Chinese market, especially in the field of enterprise-level AI. In response to a question from a reporter from China Business Network about whether IBM will adjust its China business strategy under the new global economic and technological development situation, Chen Xudong, chairman and general manager of IBM Greater China, said: "We believe that in the field of AI, IBM's strategies in China and the United States are no different."]

On August 26, a reporter from the First Financial Daily confirmed from IBM China that IBM will completely close its R&D department in China, involving more than 1,000 employees.

IBM China said in a statement to China Business News: "IBM will adjust operations as needed to provide the best service to clients. These changes will not affect our ability to support clients in Greater China."

The statement also mentioned that Chinese companies, especially private companies, are increasingly paying attention to seizing the opportunities brought by hybrid cloud and artificial intelligence technologies, and IBM's local strategic focus in China is to leverage our rich experience in technology and consulting to build teams with corresponding skills to help Chinese customers co-create solutions that meet their needs.

IBM emphasized that in the future it will turn to serving China's private enterprises and some multinational companies in China, but the First Financial reporter learned that large state-owned enterprises in key fields such as finance and energy were IBM's most important customers in the past.

China was once the market where IBM had the most complete business structure outside the United States. The closure of the R&D department is an important turning point in IBM's 40-year development history in China.