US computing giant IBM is shutting down one of its major entities in China, 32 years after it was established to manage local research and development operations.
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The decision follows last year’s lay-offs of over 1,000 employees at the IBM China Development Lab and China Systems Lab across several cities.
IBM (China) Investment Company Limited had “completed its mission” of carrying out development in China and would cease operation, a company representative said by email on Friday.
Known by its nickname Big Blue, IBM will continue its operations in China through another entity, IBM (China) Company Limited. “Our priority remains helping local clients seize opportunities in hybrid cloud and artificial intelligence with our deep technology and consulting expertise,” the representative said, stressing that the change would not affect the company’s ability to support clients in the country.
Western tech giants have been trimming their Chinese businesses amid geopolitical uncertainties.
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IBM (China) Investment, registered in 1992, and IBM (China), established eight years later, are owned by Hong Kong-based IBM China/Hong Kong Limited, according to corporate information provider Aiqicha.