IT Firm IBM and Microsoft to Scale down business: Fires Hundreds of employees. As firms continue to depart or cut down their operations in Russia, tech giants IBM and Microsoft are laying off hundreds of staff.
In the wake of Russia’s invasion of Ukraine, Microsoft has declared that it will “scale down” its operations in the country. According to reports, the corporation has laid off 400 workers in Russia. The decision was made as a result of “changes in the economic outlook” and their influence on Microsoft’s business in Russia, according to a company representative.
After Russia invaded Ukraine in March, IBM shut down its Russian business, but staff were kept on the payroll. Chairman and CEO Arvind Krishna announced a “orderly wind-down” of business in Russia in a note to employees on May 30.He stated that the local staff would be laid off.
“Our Russian colleagues have been subjected to months of worry and uncertainty through no fault of their own,” Krishna added. “We know that this news is upsetting, and I want to reassure them that IBM will continue to stand by them and take all reasonable steps to provide support and ensure a smooth transition,” he added.
In Russia, IBM employs several hundred individuals, according to Insider. According to an official copy of Krishna’s statements from IBM’s first-quarter results call in April, the company’s business in Russia is “not significant” and focused on high-end infrastructure and software. Meanwhile, a Microsoft spokesperson told Insider on Thursday that the company is dramatically reducing its business in Russia. In March, Microsoft halted new sales and services in Russia, but it continues to support current clients.
“We have decided to considerably scale down our operations in Russia as a result of the changes in the economic outlook and the impact on our business in Russia,” a Microsoft spokesperson told Insider. “While the suspension of new sales is in effect, we will continue to fulfil our existing contractual obligations with Russian customers.”
A representative for Microsoft informed Bloomberg, which first reported the story, that the company is laying off 400 employees in Russia.
“We are working closely with impacted employees to ensure they are treated with respect and have our full support during this difficult time,” the tech giant told Insider.Microsoft and IBM now number among the major US and European companies — including Goldman Sachs, McDonald’s, and Disney — that have announced they’d be ending their operations in Russia.
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