Business

IBM winds down business in Russia; lays off workforce

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IBM had suspended its business in the country in March after Russia’s invasion of Ukraine.

IBM had suspended its business in the country in March after Russia’s invasion of Ukraine.

IBM corporation is winding down its business in Russia, and laying off its entire workforce in the country. Like many other tech firms, the American company had suspended its operations in Russia in March after the Ukraine invasion.

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“As the consequences of the war continue to mount and uncertainty about its long-term ramifications grows, we have now made the decision to carry out an orderly wind-down of IBM’s business in Russia,” CEO Arvind Krishna wrote to his global staff a week ago.

Last month, Mr. Krishna had told Reuters that the firm was unsure of how much longer it can pay its workforce in Russia. But, in the May 30 memo, he said the company continued to pay its employees in Russia following the business closure in the country.

“Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty. We recognise that this news is difficult, and I want to assure them that IBM will continue to stand by them and take all reasonable steps to provide support and make their transition as orderly as possible,” Mr. Krishna noted

Russia accounts for about $300 million out of IBM’s $57.4 billion global revenue.



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