On January 9, announced that its plan to cut 11% of its workforce, or 2,500 jobs worldwide and to reduce executive compensations by 30% to 50% as part of measures to counter declining profits amid the global recession.
The Lenovo Company said that its part of Lenovo’s latest restructuring plan to renovate its business amid the global economic slowdown. As part of the restructuring, Lenovo will also merge its China and Asia Pacific operations to reduce expenses. That will help save $300 million by the end of next fiscal year in March 2010, though the restructuring would cost about $150 million.This is Lenovo’s largest restructuring plan since it acquired IBM’s PC department in 2005.
In November last year, Lenovo’s profits in its second quarter plunged 78 percent because of sluggish demands in the corporate sector (corporate entities buy 60 to 70 percent of its products) and slower business in China.
Chairman Yang Yuanqing in a statement following the second quarter report said “Although the integration of the IBM PC business for the past three years was a success, our last quarter’s performance did not meet our expectations.”
This news is from China electronics manufacturer.