IBM’s former IT services group plans to separate its China business

Kyndryl’s move reflects geopolitical tensions and follows trend of western companies seeking to insulate their Chinese units

IBM’s former IT services unit is planning to split off its China business in the latest sign of how geopolitical tensions and Chinese data laws are forcing multinationals to rethink their global footprint.US-based Kyndryl, which was spun out of IBM in 2021 and says it is the world’s largest provider of IT infrastructure services by revenue, has told some employees about the decision to split, according to three people with knowledge of the matter.

It has not set out details of when it will take effect or who will control the China entity, the people said. One added that the move would affect roughly 6,000 staff in Hong Kong and mainland China.

Kyndryl is listed in New York and has partnerships with Microsoft, Google Cloud and Amazon Web Services. The company, which owns data centre space and advises companies on storing and managing their data, accounted for more than a quarter of IBM’s revenues before it was spun off.


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