IBM closing research unit in China, Wall Street Journal reports

By Steve Gelsi

Move will reportedly affect 1,000 jobs and comes after IBM's revenue from China fell nearly 20% in 2023

IBM Corp. is shutting down its research and development department in China in a move that will affect 1,000 jobs, as technology companies continue moving out of the country, the Wall Street Journal reported Monday.

IBM (IBM) broke the news in a virtual meeting with employees in Asia, the newspaper reported.

Employees told the Journal that some of the jobs will move to other locations, such as Bengaluru, India.

An IBM China spokesperson did not comment, the newspaper said.

While China's economic growth has drawn in IBM and other companies, the government has been promoting domestic technology companies over U.S. companies, the report said.

IBM's revenue from China dropped by nearly 20% in 2023.

IBM's stock rose 0.3% in early trading on Monday.

Also read: Thousands of miles from Silicon Valley, this small country is building a booming tech sector

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-26-24 0947ET

Copyright (c) 2024 Dow Jones & Company, Inc.