Jun 8, 2022 - Economy & Business
IBM begins layoffs for its entire Russian workforce
IBM said Tuesday it has begun laying off its entire Russian workforce as the company ends its operations in the country.
The big picture: IBM was one of a number of global businesses that suspended their operations in Russia back in March since Moscow's unprovoked invasion of Ukraine began.
Details: IBM employees who were kept on the payroll until now will be laid off as the company begins its "orderly wind-down" of business in Russia, the company said Tuesday.
- “Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty," IBM CEO Arvind Krishna said in a memo released Tuesday.
- "We recognize that this news is difficult, and 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."
- IBM's Russian website is no longer available.
Context: Recent U.S. sanctions against Russian banks have made it harder for IBM to pay its employees, Reuters reports.
- IBM told investors that ending business in Russia won't have a major impact on the company's bottom line, Engadget reports.
- IBM has a number of major customers in Russia, including federal banks and energy companies, Yahoo! Finance reports. The company also hosted its Think Summit in Moscow back in 2019.