IBM and Microsoft are Laying off Hundreds of Employees in Russia

IBM and Microsoft are laying off hundreds of workers in Russia as companies continue to leave or scale back operations in the country.

After Russia invaded Ukraine in March, IBM suspended its Russian operations, but employees were kept on the payroll. On May 30, chairman and CEO Arvind Krishna announced an "orderly wind-down" of business in Russia in a memo to employees. He stated that the local workforce would be laid off.

He said, "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."

IBM told that it employs hundreds of people in Russia. According to an official copy of Krishna's remarks from IBM's first-quarter earnings call in April, the company's business in Russia is "not large" and focused on high-end infrastructure and software.

Meanwhile, Microsoft is significantly reducing its operations in Russia, a company spokesperson told Insider on Thursday. In March, Microsoft suspended new sales and services in Russia, but it continues to service existing customers.