Exclusive: IBM Chief Says Closing China Units Is ‘Done’ and ‘Not Reversible’
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Arvind Krishna, the chief executive of IBM Corp. has explained the company’s rationale in closing its research and development units in China, citing the need to focus on several strategic sites such as Austin and San Jose in the United States, as well as key Indian cities like Bangalore and Kochi.
At an internal online meeting Tuesday, Krishna emphasized that IBM can only invest in a limited number of locations at scale. These strategic sites, he said, must be capable of accommodating thousands of staff while supporting a wide range of products, including software development, hardware design and consulting services.
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- IBM is closing its R&D units in China to focus on strategic sites in the U.S., India, Canada, Poland, and Ireland.
- The decision affects over 1,700 employees in China and aims to consolidate efforts in scalable locations.
- IBM's revenue in China has seen double-digit declines, while Indian operations reported a 20% revenue increase in 2023.
- IBM Corp.
- IBM Corp. is closing its research and development units in China to focus on strategic sites like Austin, San Jose, Bangalore, and Kochi. This decision affects over 1,700 employees in China and is part of a broader strategy to shift key projects to India. IBM's operational shift comes amid declining revenues in China and thriving growth in its Indian operations. Contact reporter Denise Jia at huijuanjia@caixin.com for more information.
- 2022：
- IBM China’s revenue fell by 20%.
- 2023：
- IBM India's revenue grew by 20%, contributing to a 6.5% year-on-year increase in IBM’s Asia-Pacific revenue.
- 2023：
- IBM China’s revenue fell by 16%.
- August 2024：
- IBM abruptly announced it was shutting down two major research and development units in China, affecting more than 1,700 employees.
- Tuesday, September 10, 2024：
- At an internal online meeting, Arvind Krishna explained the rationale behind closing R&D units in China and focusing on strategic sites in the US and India.
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