IBM Is Laying Off All Employees in Russia
IBM suspended its business operations in Russia back in March, but now the company is pulling out of the country completely.
Just like most western companies, IBM reacted to Russia's war with Ukraine by halting business operations and abiding by the growing list of sanctions placed on the country. At the same time, it continued to support its Russian "IBMers," but that support is coming to an end.
In a memo(Opens in a new window) written and shared publicly by IBM Chairman and CEO Arvind Krishna, he explains that, "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."
Krishna explains this move as a "natural next step," but also makes it clear "Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty." Although they are losing their jobs, IBM intends to support them however it can as the company exits the country.
The news follows Google's decision last month to file for bankruptcy in Russia after its bank accounts were seized and paying local employees became all but impossible. As Engadget(Opens in a new window) points out, IBM leaving Russia will have very little impact on its business operations. The company's total revenue last year was $57.4 billion, and Russia only accounted for $300 million of that.
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