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IBM ends its activities in Russia – Software

IBM begins what CEO Arvind Krishna calls an orderly liquidation of IBM’s business in Russia.

The move, unveiled Tuesday in a letter originally sent May 30 to IBM employees, comes after Big Blue’s first decision in March to suspend operations in Russia due to Russia’s war on Ukraine.

In fiscal year 2021, Russia generated about $300 million in revenue and about $200 million in profit and cash, said James Kavanaugh, IBM’s senior vice president and chief financial officer.

executive on April 19 during IBM’s first fiscal quarter 2022 financial analysts’ conference call. Kavanaugh said at the time that IBM expects no contribution from Russia in fiscal year 2022.

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IBM joins several leading technology companies in closing their operations in Russia, including HP Inc., Hewlett Packard Enterprise, SAP, DXC Technology, Accenture and others.

Krishna, in his letter to IBM employees, wrote that since the company suspended operations in Russia, it has focused on the safety and security of its employees in the country and on evaluating options longer term while continuing to pay these employees.

“As the consequences of the war continue to worsen and uncertainty about its long-term ramifications grows, we have now made the decision to proceed with an orderly liquidation of IBM’s business in Russia. We consider this decision both right and necessary, and a natural next step after the suspension of our activities,” he wrote.

The shutdown process began on May 30, and it means separating its Russian workforce, Krishna wrote.

“Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty. We recognize this is difficult news, and I want to assure them that IBM will continue to support them and take all reasonable steps to provide assistance and make their transition as orderly as possible…. We remain united in our hope to see an end to this war and the restoration of peace,” he wrote.

This article originally appeared on crn.com


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