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Rochester's Big Blue workers to split between IBM, Kyndryl

In October 2020, IBM announced that it would be splitting into two entities by the end of 2021. The second company, to be based in New York City, will go by the name of Kyndryl. While IBM in Rochester is a sliver of what it was from the late 1950s to the 1980s, it is believed to still be a major employer here. Of those remaining Big Blue teams, some will work for the classic IBM and some will be employed by Kyndryl.

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A Los Angeles real estate firm has purchased the 492-acre IBM campus in Rochester. IBM will lease eight of the 34 buildings for its operations here.
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IBM’s coming split into two separate companies by the end of 2021 will mean Rochester employees will soon be working for two different employers.

In October 2020, IBM announced that it would be splitting into two entities by the end of 2021. The second company, to be based in New York City, will go by the name of Kyndryl.

While many questions remain, some answers have come out about how this will impact what remains of IBM’s long-time presence in Rochester.

IBM in Rochester is a sliver of what it was from the late 1950s to the 1980s, although it is believed to remain a major employer in the city. The workforce has been eroded from more than 8,000 employees to an estimated 2,300 to 2,800 workers today. The company stopped releasing an exact local workforce number in 2008, when 4,200 employees were based here.

Of those remaining Big Blue teams, some will work for the classic IBM and some will be employed by Kyndryl, according to IBM's U.S. Markets and Regional Communications Manager Carrie Bendzsa.

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The employees that will remain on the IBM roster include those who work on IBM i, Power, and Quantum computing as well as cloud and cognitive software and technology support services. An IBM Finance & Operations team and the IBM U.S. Patent center also will continue to be based at IBM in Rochester.

Staffers who work with the Managed Infrastructure Services team in Rochester will become Kyndryl employees, when it becomes an independent company.

“At Kyndryl, we create, modernize, run and manage the technology infrastructure the world depends on every day. That work continues at the Rochester, MN site,” stated Douglas Shelton, the former director of IBM Corporate Communications who now works for Kyndryl.

The Kyndryl workers will remain in Rochester in leased space on the former IBM campus.

In 2018, IBM sold its almost 500-acre Rochester campus with its 34 buildings for $33.9 million. IBM has a 12-year lease to occupy eight buildings on the east side of its former complex at 2900 37th St NW that is now called the Rochester Technology Campus.

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