(Yicai) March 3 -- The research and development division in China of US computing giant International Business Machines has officially shut down.

IBM China Ventures officially closed on March 1 after 32 years of operations, as it had "completed its mission," and IBM moves to integrate its global product development division, Yicai learned from IBM China.

In August last year, IBM China told Yicai that the parent firm intended to disband its R&D division in China in a move that would have impacted more than 1,000 employees from its IBM China Development Lab and IBM China System Lab. Even though the layoff was completed in October, many staffers kept working for the company.

IBM China Ventures' operational adjustments will not involve large-scale layoffs but will mainly affect those employees who had not yet left the company after last year's dismissal, IBM China added.

IBM China is responsible for IBM's business in the world's second-largest economy and will not be affected by IBM China Ventures' shutdown, according to a representative from IBM China.

"The focus of our business remains to help Chinese firms seize the opportunities brought about by hybrid cloud and artificial intelligence technologies," IBM China noted. "The IBM China Ventures' closure will not impact our ability to support customers in China."

With the new adjustments, IBM China will shift its focus towards serving private Chinese enterprises and certain multinational companies operating in the country, IBM China said.

In the first half of last year, IBM's revenue from the Chinese market fell 5 percent from a year earlier, while global sales increased 1 percent in the period, according to the New York-based company's 2024 semiannual earnings report.

Editor: Futura Costaglione