Kyndryl, an IT services company, intends to split its operations in China, according to reports

28 Sep, 2023

Kyndryl, an IT services company, intends to split its operations in China, according to reports

Kyndryl Holdings, a U.S.-based IT services provider, is reportedly planning to separate its business operations in China, according to sources cited in the Financial Times on Wednesday. While the company has informed some employees of this decision, specific details regarding the timing and governance of the China entity have not been disclosed. This separation is expected to impact approximately 6,000 employees based in Hong Kong and mainland China.

Kyndryl, a New York-listed company, specializes in IT infrastructure services and operates in over 60 countries. Notably, it serves cloud providers like Alphabet's Google and Microsoft.

In 2020, IBM announced its intention to split off its managed infrastructure services business, eventually forming Kyndryl as a standalone entity in the following year.

U.S. companies like Kyndryl have encountered challenges stemming from the tensions between the U.S. and China. China has criticized U.S. Efforts aimed at limiting its access to cutting-edge technology, within the United States. firms have expressed concerns about fines, regulatory actions, and other uncertainties associated with conducting business in China.

Geopolitical tensions, coupled with an economic slowdown, have eroded the confidence of U.S. businesses operating in China. A recent survey revealed that the number of companies expressing optimism about their five-year outlook in China has reached a record low.