Lenovo Cuts 1,400 Jobs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Lenovo Cuts 1,400 Jobs

The PC-maker also plans to streamline its sales and marketing organizations, centralize teams, and align multi-national investments and resources.

Chinese computer maker Lenovo said Thursday it would cut 1,400 jobs in order to remain competitive in the fierce PC market.

The cuts, which amounted to 5% of Lenovo's global workforce, were expected to reduce expenses by about $100 million in the 2007-08 fiscal year, which started April 1. The majority of the money would be reinvested back into the business to support strategic initiatives, the company said.

"To win in the PC industry, our path is very clear," William J. Amelio, Lenovo's president and chief executive officer, said in a statement. "We must deliver the world's best-engineered PCs, offer our customers an unrivaled ownership experience, and grow faster and more profitably than the rest of the industry. This means we must make our organization more efficient by reducing expenses."

Lenovo expected to take a pre-tax restructuring charge of from $50 million to $60 million, most of which would be taken in the current quarter ending June 30.

The company said 750 positions would eventually be transitioned into emerging markets closer to Lenovo's suppliers and manufacturing operations. The net effect, therefore, is a workforce reduction of about 650 positions from its global workforce, the company said. Most of the cuts would be completed within one to 12 months.

The latest action stems from a recent analysis of Lenovo's global operations and PC market conditions, the company said. Other moves planned by the company included streamlining the global supply chain by aligning more work closer to the supply base, and integrating software testing in Lenovo's China operations. In addition, the company planned to streamline its sales and marketing organizations, centralize teams, and align multi-national investments and resources.

In the first quarter of this year, Lenovo was ranked the fourth largest PC maker worldwide in terms of shipments, according to Gartner. In the United States, the world's largest market, it failed to reach the top five.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll