US computer giant IBM confirmed on Monday that it would close its research and development department in China.

Several employees told AFP they were informed during a brief meeting with US executives on Monday that the company would disband its research and development team in China and move operations to another country.

When asked about the cuts, an IBM spokesman told AFP: “IBM adjusts its operations as needed to best serve our customers, and these changes will not impact our ability to support customers across the Greater China region.”

Employees said more than 1,000 jobs could be cut in China and that it was unclear where the company would relocate its operations.

“It was just officially announced today,” said an employee who did not want to give his name.

The employee, who said he had worked for IBM for 10 years, said: “Everyone has remained relatively calm … it feels more like a peaceful separation.”

The company has been operating in China for decades and employs thousands of people there.

The research and development teams are located in several cities, including Beijing, Shanghai and Dalian.

Members of those teams said they were denied access to the company’s server over the weekend.

Tensions between the US and China have led many international companies to either lay off employees or relocate some of their China operations to other locations.

The Wall Street Journal reported in May that technology giant Microsoft had asked hundreds of China-based employees in its cloud computing and artificial intelligence divisions to leave the country this year.

The move was motivated by increasing scrutiny of the company’s presence in China, the newspaper said.

US companies are increasingly complaining about what they see as an unfair business environment in China, with limited intellectual property protection and preferential treatment of domestic competitors.

These fears were heightened last year by a sweeping crackdown on U.S. consulting firms operating in China.

© 2024 AFP