Kyndryl plans to separate its China business, amid growing tensions between the US and China.
The Financial Times reports that the former IBM division has told some employees about the decision, but has yet to detail when it plans to make the move, and who will control the new entity.
IBM spun its Managed Infrastructure Services business out in 2021, with Kyndryl soon claiming to be the world’s largest IT infrastructure services provider.
The company says that it serves thousands of enterprise customers across 60 countries. Earlier this year the firm signed a ten-year partnership with BT Group to help move the telco's critical applications to the cloud, and extended a deal with Nokia.
Kyndryl has also begun selling off its own data centers, including in Switzerland, and leasing back the facilities.