The suspension of Russian operations by International Business Machines Corp. it costs the technology giant a very profitable business.
In 2021, IBM will generate about $ 300 million in revenue in the country, Chief Financial Officer Jim Cavanaugh said on Tuesday during a call for the company’s profits, noting that the business is focused on high-end infrastructure and software. He estimated that the business has contributed about $ 200 million to the 2021 profit.
Following Russia’s invasion of Ukraine, IBM halted operations in that country, including technical support for existing Russian customers.
Mikhail Fedorov, Ukraine’s Minister of Digital Transformation, called IBM on Twitter, saying its office in Russia remains open.
The company also responded on Twitter that the shutdown was “comprehensive and covers all new and existing businesses with Russian clients, including consulting services.”
IBM is also offering relocation assistance and other assistance to employees in both countries, Mr Cavanaugh said, adding that the company continues to pay approximately 500 employees it had in Russia and about 40 in Ukraine.
One initiative, for example, connects Ukrainian IBM employees and contractors fleeing the country with IBM colleagues in the region who can offer accommodation, transportation and other assistance to them and their families.
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