Lenovo thousands of layoffs does not affect the domestic business annual $250 million

EST on March 16th (Beijing time March 17th) according to the latest reports of electricity, Lenovo Group said Thursday it will lay off about 1000 people, accounting for 5% of the total number of employees, the aims of restructuring the personal computer department.

Lenovo said the layoffs will cover North America, Asia and europe. The goal is to reduce the cost of $250 million a year to save the cost of Lenovo's operating costs in the first three quarters of this fiscal year is about $1 billion 200 million.

Lenovo said the layoffs involve multiple departments, but will not affect the operation of any business in Chinese. Lenovo spokesman Ray Gorman said that the company has no plans to further layoffs, this is a short-term behavior, the purpose is to promote future growth.

Roger Kay Endpoint analyst market research company said: "now is still in the early stage of integration, find some redundancies a little weird." Lenovo has received about 10000 employees from the IBM PC division. It is expected that in the fourth quarter of March 31st will be $one hundred million restructuring costs, while Lenovo's profit in the third quarter of only HK $365 million (equivalent to $47 million). He said: at present the entire PC industry is facing enormous pressure, reduce costs is the task of each enterprise to consider." Amelio, Lenovo's chief executive, said: "we want to save most of the money used in the global fight against the pressure of competition, give full play to the strength of new products and brand awareness."

Lenovo also announced, will bring some enterprises from New York Purchase transfer to North Carolina Raleigh, and further rationalize the relationship between sales and technical services. Lenovo spokesman Julie Kateribo said, Lenovo hopes to make management more close to North Carolina's production department, at the same time, Lenovo will transfer the main ThinkCentre development team to China in North Carolina, retained a small desktop development team. Lenovo desktop in China uses a lot of ThinkCentre products. Lenovo will leave the ThinkPad development team in North carolina. Employees in Raleigh are expected to be reduced by 300 to 350.