IBM starts ‘orderly slowdown’ of its entire Russian operation, all employees lose jobs

Global computing giant IBM announced on March 7 that, following Russia’s invasion of Ukraine, it would suspend all business operations in Russia. A new letter sent to all IBM employees on May 30 by CEO Arvind Krishna has now been made public (opens in new tab) (thank you engaged (opens in new tab)), in which he announces that IBM has made the decision to “carry out an orderly liquidation of IBM’s Russian business”.

Since March, IBM continued to pay (opens in new tab) Russian personnel affected by the suspension of business. With this change, however, the entire IBM Russia workforce will lose their jobs.

“This process will begin today and will result in the separation of our local workforce,” Krishna writes. “Our colleagues in Russia, through no fault of their own, have endured months of stress and uncertainty. We recognize that this news is difficult and want to assure them that IBM will continue to support them and will take all reasonable steps to provide support and make your transition as orderly as possible.”

Russia was a small part of IBM’s global operations, accounting for about 0.5% of revenue in the last financial year: although IBM is so big it still adds up to $300 million. Reuters estimates that the company employed around 1,000 people in the region. The IBM Russia section of the company’s website has been removed (opens in new tab).

Krishna’s email ends: “We remain united in our hope for the end of this war and the restoration of peace.”

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