IBM and Microsoft lay off hundreds of employees in Russia

IBM and Microsoft are laying off hundreds of employees in Russia; Tech giants are downplaying their footprints in the country in response to its war with Ukraine.

IBM to lay off employees in Russia

Arvind Krishna, chief executive of IBM, told employees in a note that the company would carry out an "orderly liquidation" of its business in Russia. As a result, IBM's entire Russian workforce will be laid off.

"Our colleagues in Russia have endured, through no fault of their own, months of stress and uncertainty," Krishna said, according to Fox Business. "We understand 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."

For his part, a spokesman for IBM said: "The company has hundreds of employees in Russia."

Microsoft withdraws from Russia

Meanwhile, a Microsoft spokesperson said that it will significantly reduce its operations in Russia as a result of changes in its economic outlook and the impact on its business in Russia.

"We will continue to honor our existing contractual obligations with Russian customers while the suspension of new sales remains in effect," the spokesperson added. "We are working closely with affected employees to ensure they have our full support during this challenging time."

Bloomberg reported that more than 400 Microsoft employees in Russia will be affected.

Reducing the business of major technology companies in Russia

On the same front, Jim Kavanaugh, IBM's chief financial officer, said during the company's first-quarter earnings call in April that its business in Russia is "not large" but is "focused on advanced infrastructure and software."