IBM has begun a “orderly wind-down” of its business in Russia, laying off staff, and its Indian-origin CEO Arvind Krishna has stated that the global IT giant will continue to support its employees in the nation.
After President Vladimir Putin ordered the invasion of Ukraine, the West imposed crippling sanctions on Moscow, the New York-based multinational technology giant announced the suspension of its business in Russia in early March.
The company published an update on its business operations in Russia on Tuesday, stating that it has decided to conduct an orderly wind-down of IBM’s operations in Russia.
Krishna, IBM’s Chairman, President, and CEO, stated in a statement: “On March 7th, I informed you of our decision to stop IBM’s business operations in Russia due to the conflict in Ukraine.”
IBM suspended business in Russia in March, but kept paying staff. Now it’s leaving the region entirely. https://t.co/QBPWMUOtoT
— PC Gamer (@pcgamer) June 8, 2022
“For months, our primary focus has been on ensuring the safety and security of IBM employees and their families in impacted areas. We elected to halt operations in order to assess longer-term options while continuing to pay and provide for our Russian staff. As the war’s results become clearer and the long-term implications become more uncertain, IBM has decided to wind down its operations in Russia in a systematic and methodical manner.
“We believe that this move is both right and essential, and that it is a logical next step after our business halt,” Krishna added. This procedure will begin on Tuesday, he said, and will result in the separation of the local employees.
“Our Russian colleagues have been subjected to months of worry and uncertainty through no fault of their own.” We understand that this is a difficult news, and I want to reassure them that IBM will continue to stand by them and take all reasonable steps to give support and ensure a smooth transition,” he said.