Lenovo said on Feb. 25 it would cut nearly 450 jobs in China, in addition to 2,500 previously announced layoffs, amid falling demand due to the global economic crisis. Lenovo did not specify which areas the 450 jobs would be cut from, only saying in a statement that they were roles that supported operations worldwide.
"While our business in China remains very strong, many of our global support functions have employees based in China," chief executive Yang Yuanqing said. "Although difficult, these reductions are a necessary part of our response to the global economic downturn."
A spokeswoman said the China layoffs were on top of the 2,500 job cuts worldwide announced last month aimed at cutting $300 million in costs for the coming fiscal year. Lenovo recorded a net loss of $97 million for the third quarter ending December, as global demand slumped.
Worldwide demand for the company's personal computer shipments declined 5% year-on-year over the third quarter ending December. Consolidated sales for the third quarter fell 20% year-on-year to $3.59 billion.
Lenovo also announced this month that Yang would step down as chairman and return to the role of chief executive officer, after William Amelio, a U.S. national who has run the firm since 2005, did not have his contract renewed.
Copyright Agence France-Presse, 2009