However, IBM emphasizes that these changes will not impact its ability to support clients across the Greater China region. IBM’s R&D labs in China were operational for several years before the recent its to shut them down.
Going forward, IBM will focus on assisting private enterprises and select multinationals with hybrid cloud and AI solutions.
IBM’s decision to shut down its R&D labs in China and lay off over 1,000 employees is part of a strategic shift. The company aims to better serve clients across the Greater China region by focusing on assisting private enterprises and select multinationals with hybrid cloud and AI solutions. This move reflects IBM’s realignment of resources and priorities.
Several companies have scaled back their operations in China due to geopolitical headwinds and challenges in the domestic market. These include Ericsson, Tesla, Amazon.com, and Intel.
These actions reflect the intensified Sino-US rivalry and the need for global businesses to adapt their operations in response. While IBM's sales in China have declined in recent years, the company remains committed to supporting clients across the Greater China region by focusing on hybrid cloud and artificial intelligence solutions.
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