News

After Netflix, IBM completely shuts down Russian operations amid Ukraine war

Published

8 hours ago

on

June 9, 2022

By

Megha Gupta

Highlights

Krishna said that the company has begun laying off employees.
He stated that the company’s focus for months has been on looking after the safety and security of IBMers and their families.
IBM suspended operations back in March but kept employees on the payroll.

Krishna said that the company has begun laying off employees.

IBM has started an “orderly wind-down” of its business and laying off the workforce in Russia with its Indian-origin CEO Arvind Krishna saying the global IT giant will continue to stand by its employees in the country.

In early March, the New York-headquartered multinational technology corporation announced the suspension of its business in Russia after President Vladimir Putin ordered the invasion of Ukraine, prompting the West to impose crippling sanctions on Moscow.

IBM has begun the process of shuttering its operations in Russia. The company CEO Arvind Krishna told the employees in a memo that due to growing circumstances and uncertainty around the events unfolding around the Russia – Ukraine war, the company has taken the decision to pull out of the country.

In March this year, IBM put its business operations in Russia on hold during the ongoing war. It kept its employees on the payroll, while it evaluated a long-term decision. Unfortunately, it looks like that has now come to pass.

He stated that the company’s focus for months has been on looking after the safety

“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,” Chief Executive Arvind Krishna wrote to the employee

Tech giants IBM and Microsoft are laying off hundreds of employees in Russia as companies continue to leave or scale down businesses in the country.

IBM suspended operations back in March but kept employees on the payroll.

IBM suspended its Russian operations in March after the country invaded Ukraine, but employees were kept on the payroll. In a memo to staff on Tuesday, chairman and CEO Arvind Krishna announced an “orderly wind-down” of business in Russia. The local workforce will be laid off, he said.

“Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty,” said Krishna. “We recognize 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,” he continued.