ARMONK (dpa-AFX) - International Business Machines Corp. (IBM) will be closing down its research and development department in China, according to the Wall Street Journal.
The report said the announcement was made by Jack Hergenrother, an IBM executive, at a virtual meeting.
Hergenrother explained that the decision was driven by intense competition in China, as well as a decline in the company's infrastructure business.
Further to the closure of the department, the operations will be moved to other overseas facilities, and will affect more than 1,000 employees.
IBM is reportedly planning to hire additional engineers and researchers in places outside China, including in Bengaluru, India.
The report noted that the New York-based company's decision comes amid rising geo-political tensions between the U.S. and China, which have already forced many multinational companies to reassess their businesses in China.
Currently, IBM's stock is trading at $197.80, up 0.87 percent on the New York Stock Exchange.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
