International Business Machines Corporation (IBM) is winding down its business in Russia and has started to lay off its employees in the country, according to a memo to staff sent last week and emailed to Reuters yesterday.
After Russia invaded Ukraine in February, IBM reportedly joined hundreds of other companies in suspending business in the country in March 2022. Many others had announced a complete exit from Russia.
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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," IBM CEO Arvind Krishna wrote to employees, as per Reuters report.
CEO Krishna had reportedly told Reuters early last month that he was not sure how much longer the company could pay its employees in Russia in light of escalating sanctions. An IBM spokesman said there were several hundred employees in Russia, as per Reuters.
"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," CEO Krishna reportedly wrote.
According to a report by Engadget, Russia accounted for roughly 0.5 percent of IBM¡¯s total revenue last year, or $300 million out of its total revenue of $57.4 billion.?
IBM has a number of high-profile customers in Russia, including federal banks, energy companies and Russian Railways. The company even held its Think Summit in Moscow back in 2019, where it highlighted its many Russian clients. But since March, the company has stopped providing ¡°goods, parts, software, services, consulting and technology¡± to Russian companies, according to Reuters.
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