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Lenovo To Cut 1,000 Jobs, Move Headquarters

Lenovo Group, the world's third largest personal-computer company, said March 16 it would cut 1,000 jobs, or about 5% of its global workforce, as part of cost-savings plan. The Chinese company with its headquarters in the U.S. said it would also move its corporate operations from Purchase, New York, to Raleigh, North Carolina. The company expects to complete the restructuring within six to 12 months and hopes to save $250 million in operating costs.

The company gave no geographic breakdown of its job cuts but said they would be in the Americas, Asia-Pacific and Europe, Middle East and Africa regions.

The move will integrate sales service and customer support operations. It will also move the global supply chain closer to manufacturing and suppliers. The desktop PC division will be centralized in China for increased efficiency, Lenovo said.

Last year, Lenovo bought IBM's PC division for $1.25 billion, keeping the right to use the IBM name on its computers.

Copyright Agence France-Presse, 2006

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