IBM is in the process of shutting down its research and development (R&D) departments in China, local media outlets say, becoming the latest American tech giant to scale back its presence in the increasingly restrictive China-based market.

The decision by the Armonk, New York-based tech service provider will affect its more than 1,000 employees across China, local staff told multiple Chinese media outlets, including Jiemian, a news site owned by a Shanghai municipal government.

An IBM spokesperson said in a media statement that the company adjusts its operations “based on needs.”

“These changes will not impact our ability to support customers in China,” the spokesperson said.

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