As the Russia/Ukraine war continues, so too do various unfortunate consequences from it as businesses pull out of operations in Russia or face issues for not supporting it. IBM had already begun to restrict sales and business operations in the country in response to the war, but after a few months, it looks like IBM is closing out business in Russia altogether, shutting down its operations there and laying off all employees in the region.
This news comes from an email sent out by IBM CEO Arvind Krishna. According to the letter which was made public on June 7, 2022, IBM is closing down the entirety of its IBM Russia branch. Despite ceasing sales and business in the country, IBM was continuing to pay employees in the nation. With this move, all IBM Russia employees (a workforce of around 1000) will be laid off.
"Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty,” Krishna wrote. “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.”
IBM’s move to close all Russian branches is the latest of many moves by various corporations to close business and operations in response to the ongoing conflict between Russia and Ukraine. Sony, Nintendo, and Microsoft have all ceased sales of hardware and software in the country. Google has also faced issues as it attempted to stay open. With the Russian government seizing its bank account in the nation for non-compliance in various matters, Google’s Russian branch was forced to declare bankruptcy.
“We remain united in our hope for an end to this war and the restoration of peace,” Krishna wrote in the close of his email.
As the Russia/Ukraine conflict continues on, it remains to be seen just how much it will continue to affect business and the global economy. With IBM officially cashing out of the nation altogether, stay tuned for further updates here at Shacknews.
TJ Denzer posted a new article, IBM begins shutdown of all operations in Russia
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