IBM layoffs begin in Russia
IBM said Tuesday it has begun laying off its entire Russian workforce as the company ends its operations in the country.
The big picture: IBM was one of a number of global businesses that suspended their operations in Russia back in March since Moscow’s unprovoked invasion of Ukraine began.
Details: IBM employees who were kept on the payroll until now will be laid off as the company begins its “orderly wind-down” of business in Russia, the company said Tuesday.
- “Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty,” IBM CEO Arvind Krishna said in a memo released Tuesday.
- “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 Russian website is no longer available.
Context: Recent US sanctions against Russian banks have made it harder for IBM to pay its employees, Reuters reports.
- IBM told investors that ending business in Russia will not have a major impact on the company’s bottom line, Engadget reports.
- IBM has a number of major customers in Russia, including federal banks and energy companies, Yahoo! Finance reports. The company also hosted its Think Summit in Moscow back in 2019.