Lenovo to lay off over 3,000 employees

Beijing, Aug 13 (IANS) Chinese technology giant Lenovo announced on Thursday that it was laying off 3,200 employees following a disappointing last quarter of business.

The job cut, which will be conducted in the company’s non-manufacturing work force, accounts for about 10 percent of the non-manufacturing headcount and five percent of its total employees globally, a company said.

Lenovo saw profits attributable to its equity holders slump 51 percent year on year to $105 million for the three months through June, or the first quarter of the company’s fiscal year 2015/2016, Xinhua news agency reported.

It vowed to reduce expenses by about $650 million in the second half of this fiscal year by realigning its businesses, accelerating expansion in the PC market and improving efficiency.

Revenues rose three percent year on year to $10.7 billion in the second quarter, with PC business contributing $7.3 billion, down 13 percent year on year.

The company said it sold 13.5 million personal computers worldwide, a decline of seven percent year on year, as the industry was affected by factors such as currency fluctuation and weaker demand ahead of the release of Windows 10, the latest Windows operating system launched in late July.

Revenues from mobile business jumped 33 percent year on year to $2.1 billion, helped by the company’s purchase of Motorola’s mobile business in October 2014.

Smartphone sales grew two percent year on year to 16.2 million in the second quarter, while tablet shipments rose four percent year on year to 2.5 million, the statement added.

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