International Business Machines Corp (IBM) is liquidating his business in Russia and has begun laying off its employees in the country, according to a staff memo sent last week and emailed Tuesday to Reuters. After Russia invaded Ukraine in February, IBM joined hundreds of other companies in suspending business in the country. Many other firms had announced a complete exit from Russia.
“As the fallout from the war continues to mount and uncertainty about its long-term ramifications grows, we have now made the decision to conduct an orderly liquidation of IBM’s business in Russia.”, the CEO wrote, Arvind Krishnato the employees.
Krishna said to Reuters early last month that he wasn’t sure how much longer the company could pay its employees in Russiain light of the escalation of sanctions.
A spokesman for IBM said there were several hundred employees in Russia.
“Our colleagues in Russia, through no fault of their own, have endured months of stress and uncertainty… I want to assure you that IBM will continue to stand by you and take all reasonable steps to support you and make your transition as orderly as possible.“, wrote Krsna.
On the other hand, The Marriott hotel chain said on Friday that it will suspend its operations in Russia after more than 25 years.
The company decided on March 10 suspend the opening of upcoming hotels and all future hotel developments and investments in Russia, after the invasion of Ukraine by Moscow. “We remain focused on taking care of our Russia-based associates,” Marriott said.
the hotel chain Hilton Worldwide suspended all development activity in Russia in March and closed its corporate office in Moscow.
Marriott thus joins a long list of multinational companies that decided to suspend their operations in Russia due to the invasion of Ukraine.
Recently, Nike announced the suspension of sales in partner stores of the brand in Russia and the interruption of all its partnerships with retailers in that country.
The Beaverton-based multinational (state of Oregon, northwest) justified the decision by the “operational difficulties” in Russia.
According to the Russian newspaper Vedomosti, the distribution agreements that Nike had with its two main commercial partners in Russia come to an end on Thursday, especially with the group Inventive Retail Group (IRG), which manages the Up & Run stores, a total of 37 in that country.
American chain of coffee shops Starbucks decided to permanently stop operating in Russia, following other multinationals such as fast food McDonald’swho reached an agreement to sell his business to a local businessman.
Other foreign companies like the store H&M, French automaker Renault and Swedish home goods chain Ikea have also pulled out of Russia after the Ukraine invasion. launched on February 24 and the economic sanctions of Western powers against Moscow.
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Source-www.infobae.com