IBM announces its complete withdrawal from the Russian market

IBM announced this week that it will completely withdraw from Russia and lay off all local employees, but it will provide reasonable measures for these employees to help them tide over the difficulties. The tech giant mainly provides software solutions and cloud computing services, and its clients include Sberbank and Russian State Railways.

On March 7, IBM announced the suspension of operations in the Russian market. During the suspension of operations, IBM still paid wages and other benefits to local Russian employees. After suspending operations for 3 months, IBM decided that it would not make much sense to continue, so it ended operations in the Russian market and laid off all local employees.

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“As the consequences of the war continue to mount and uncertainty about its long-term ramifications grows, we have now made the decision to carry out an orderly wind-down of IBM’s business in Russia,” Chief Executive Arvind Krishna wrote to employees.

“Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty… 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,” Krishna wrote.