IBM has announced it will close its subsidiary, IBM Ventures (China) Co., Ltd., alongside its branches, effective March 1, 2025.

The restructuring will affect the IBM China Systems Center, which is responsible for research, development, and testing.

This decision follows IBM’s announcement in August, 2024 to relocate its China-based research and development activities to other global sites.

The closure may impact over 1,800 employees in cities such as Beijing, Shanghai, and Dalian. Reports indicate that some offices, including the one in Beijing, have already begun shutting down by dismantling office equipment.

IBM has seen a decline in financial performance in China, with revenue dropping by 19.6% in 2023. The company also reported a year-on-year decrease of 5% in revenue for the first half of 2024. While fewer clients were reported, IBM’s consulting division, IBMC, achieved five consecutive quarters of growth in China. However, sources suggest that layoffs may also impact IBMC soon.

IBM stated that its operations in China unrelated to R&D will continue, particularly in hybrid cloud and AI technology aimed at supporting local enterprises.

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