IBM Shutters R&D Labs In China, Slashing 1,000-Plus Jobs in Beijing And Elsewhere

IBM is shutting down its research and development operation in China — becoming the latest Big Tech firm to slash payrolls there amid growing Sino-U.S. tensions.

The closure of the company's China Development Lab and China Systems Lab —and the layoffs of more than 1,000 workers — was announced during a internal meeting Monday morning, the South China Morning Post reported, citing posts by employees on Chinese social media websites.

The move followed similar cutbacks by global giants including Amazon and Tesla, and reportedly left workers jobless in cities including Beijing and Shanghai.

Some learned their fate when they were unable to access the computer company's intranet system over the weekend, the SCMP said, citing the Chinese news website Jiemian.

An IBM spokesperson didn't confirm the layoffs but said in a statement that that the company was "focused on having the right teams with the right skills" to provide Chinese businesses with its "considerable technology and consulting expertise."

"IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across the Greater China region," the spokesperson said.

In April, U.S. President Joe Biden announced plans for steep, new tariffs on Chinese goods, including electric vehicles, semiconductors, solar cells and lithium-ion batteries.

Former President Donald Trump has also said he'll impose additional tariffs if he's elected in November.

IBM's Chinese revenues plunged 19.6% last year despite an overall 1.6% increase across the Asian Pacific region, the SCMP said, citing a recent financial statement.

Sales in China fell another 5% during the first half of this year while regional revenues rose 4.4%, the SCMP said.