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IBM is one of the United States technology companies that still operates in China to develop data center technology and so on. However, IBM has recently announced to their employees in the country that the research and development (R&D) division will be closed soon.
IBM confirmed that the R&D division will be moved to other countries, and will lay off around 1000 of their employees in those countries. This is because IBM's digital services now seem to have been taken over by many other local technology companies that offer the same capabilities at a cheaper price.
Some reports also say that this surprised a large number of employees at IBM China, as it was previously said that the IT infrastructure business as well as artificial intelligence is increasing this year.
However, the reality of the situation for IBM China is seen as rather gloomy when the company is seen to be recording a decreasing profit every year, even though IBM as a whole is recording an increasing profit.
The probability is high that the transfer from the use of IT services and infrastructure from the United States is decreasing, and is being replaced by local offerings.
IBM China's R&D centers are located in several cities around China such as Beijing and Shanghai, and it seems that all those workers will lose their livelihoods, but IBM said that if they want, these workers can enter IBM's R&D centers in the country- other countries.