IBM has begun a ‘orderly wind-down’ of its Russia business: Arvind Krishna

• According to James Kavanaugh, IBM senior vice president and chief financial officer, Russia generated approximately $300 million in revenue.
• Approximately $200 million in profit and cash in fiscal 2021.officer, at IBM’s first fiscal quarter 2022 financial analyst conference call on April 19.
• The shutdown process began on May 30, and it will result in the separation of the company’s Russian personnel, according to Krishna. “

IBM is beginning an orderly wind-down of its operations in Russia, according to CEO Arvind Krishna.

The move, announced Tuesday in a letter first written to IBM employees on May 30, follows Big Blue’s first step in March to cease operations in Russia due to Russia’s war on Ukraine.

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According to James Kavanaugh, IBM senior vice president and chief financial officer, Russia generated approximately $300 million in revenue and approximately $200 million in profit and cash in fiscal 2021.

officer, at IBM’s first fiscal quarter 2022 financial analyst conference call on April 19. At the time, Kavanaugh stated that IBM anticipates no contribution from Russia in fiscal 2022.

IBM follows HP Inc., Hewlett Packard Enterprise, SAP, DXC IT, Accenture, and other high-profile technology corporations in closing operations in Russia.

In his letter to IBM employees, Krishna stated that since the company’s suspension of operations in Russia, it has been focused on the safety and security of its employees in the nation, as well as assessing longer-term possibilities while continuing to pay those people.

“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 wrote.

The shutdown process began on May 30, and it will result in the separation of the company’s Russian personnel, according to Krishna.

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“Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty. We recognize 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. … We remain united in our hope for an end to this war and the restoration of peace,” he wrote.