IBM begins to lay off the entire Russian workforce

IBM will begin “orderly” its operations in Russia, according to a memo from CEO Arvind Krishna. release public today. The company suspended its business in the country in March, joining the wave of other Westerners companies chose one of the two Sales pause or withdraw from Russia altogether after the invasion of Ukraine. Although no longer doing business in Russia, IBM still pays employees in Russia. But US sanctions on Russian banks have made it harder for the company to pay its workforce in Russia, Reuters report last month.

This means that IBM will also end the employment of its Russia-based workforce. “This process will begin today and lead to the decoupling of our local workforce. Our colleagues in Russia, through no fault of their own, have endured months of tension and uncertainty. We recognize that this news is difficult and I want to assure them that IBM will continue to stand with them and take all reasonable steps to provide support and make their transition possible. as orderly as possible,” Krisna wrote in the memo.

The company told investors that no longer doing business with Russia would have little impact on their profits. The company’s chief financial officer, Jim Kavanaugh, said: “Russia is a very small part of IBM speak during the first quarter earnings call in April. Russia occupies about 0.5 percent of IBM’s total revenue last year, or $300 million from total revenue out of a total of $57.4 billion.

IBM has a number of well-known clients in Russia, including Federal bankenergy companies and Russian Railways. The company even organizes Think . Summit in Moscow back in 2019, where it emphasize its many Russian customers. But since March, the company has stopped providing “goods, parts, software, services, consulting and technology” to Russian companies, according to the report. Reuters.