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Lenovo to cut 2,500 jobs amid global slowdown

Agence France-Presse | 01/08/2009 9:59 AM

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HONG KONG - Chinese computer giant Lenovo announced Thursday it would cut about 2,500 jobs, roughly 11 percent of its worldwide workforce, after suffering losses due to the global economic crisis.

The company said in a statement to the Hong Kong Stock Exchange that the "resource redeployment plan" would help save 300 million US dollars in the financial year ending March 31, 2010.

"This plan, when fully implemented, is likely to have the effect of... reducing the number of the group's worldwide employees by approximately 2,500, representing approximately 11 percent of the group's total workforce," it said.

Lenovo, the world's fourth-biggest personal computer maker, said preliminary estimates showed it would make a loss in the final three months of 2008.

"The board believes that such potential loss is incurred mainly due to the unprecedented global economic challenges facing the world resulting in a reducing demand of personal computer and related products," the statement said.

Lenovo had seen reduced demand around the world, Lenovo said, although it also specifically identified problems in China.

"The slowing down in the Chinese economy... has also affected what has historically been a major market for the group," it said.

Hong Kong-listed Lenovo said in November last year that its net profit for the three months ending September 30 slumped 78 percent from a year earlier to 23.4 million dollars.