IBM starts 'winding down' operations in Russia

Big Blue confirmed the move in a letter to employees

IBM has confirmed it is starting to "wind down" its business in Russia due to the country's war on Ukraine.

Big Blue confirmed the move in a letter, which was sent to employees on May 30, after suspending operations in Russia in March.

The letter, which was written by IBM CEO Arvind Krishna, said the decision was made as "consequences of the war continue to mount and uncertainty about its long-term ramifications grows".

He said the shut down process began on May 30 and will result in the separation of its Russian workforce.

"Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty. We recognise 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."

Krishna added that since operations were suspended in Russia, IBM has been focused on the safety and security of its employees and has been evaluating longer-term options while continuing to pay for staff in the country.

"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. We see this move as both right and necessary, and a natural next step following our business suspension," he said.

"We remain united in our hope for an end to this war and the restoration of peace."

HP also recently confirmed it would cease all operations in Russia after suspending shipments to the country in February.

During an earnings call, Enrique Lores, HP president and CEO, said: "Considering the Covid environment and long-term outlook for Russia, we have decided to stop our Russia activity and have begun the process of fully winding down our operations."