06:29 AM EDT, 08/26/2024 (MT Newswires) -- International Business Machines ( IBM ) is shutting down its research and development division in China, which will impact more than 1,000 employees in several cities including Beijing and Shanghai, multiple news outlets reported Monday.

The move will impact IBM China Development Lab and IBM China System Lab, and all workers losing their jobs will be compensated, IBM's ( IBM ) Chinese arm told Yicai Global.

The company is moving its China R&D functions to other overseas facilities such as India, according to The Wall Street Journal.

IBM ( IBM ) executive Jack Hergenrother told employees that this is a result of intensifying competition in China and a decline in its infrastructure business in the past few years, the report said.

IBM China further said that these changes will not effect its ability to support customers in China, according to local Chinese media outlet Yicai.

IBM ( IBM ) did not immediately respond to MT Newswires' request for comment on the matter.

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