Lenovo laying off 3200 employees after poor financial quarter
While Lenovo is quite dominant in the PC market, its plans of going head-on into the smartphone industry don’t seem to be picking up well.
According to Lenovo, the company is forced to lay off as many as 3200 employees following a disappointing last quarter of business. The move, which would effectively reduce the overall headcount by five percent, would help the company to return to improved financial health by trimming its wage bill by an estimated $1.35 billion per year.
Not just layoffs, but Lenovo also plans to write off $300 million in unsold smartphones, and spend $600 million to restructure its smartphone businesses so that Motorola and Lenovo are more strategically aligned.
Speaking about the decision, Yuanqing Yang, CEO, Lenovo, said, “Last quarter, we faced perhaps the toughest market environment in recent years. To build long term, sustainable growth, we must take proactive and decisive actions in every part of the businesses.”