Lenovo announces lay-offs for the second quarter

Lenovo announces lay-offs for the second quarter

Posted:Aug 13,2015

A little over 3000 employees of Lenovo are being laid off during the second quarter of 2015. The Chinese handset maker is pulling its business down while responding to reduction in sales volume for its handset and PC units. The second quarter of the current year poses a challenging market environment for the Chinese company. At a time when tablets and PCs are going down in sales, the overall Chinese smart-phone market is facing stiff competition from within. Lenovo’s expectations regarding the second quarter haven’t been met as per their own sources. Lenovo has managed a return worth $105 million USD as its net profit was reduced by 51 percent each year. Compared to the last year, Lenovo’s revenue has risen by a mere 3 percent to $10.7 billion. Lenovo has resorted to a few measures of cost reduction which lowers the total strength of its employees by 5%. The Lenovo cell phone business group is also being restructured with lesser cell phone models for creating a simple portfolio of its products. Lenovo is likely to cut its yearly expenses by $1.35 billion following an announcement of its recent layoffs.

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