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This article was published on August 13, 2015


Lenovo to slash 3,200 jobs after it fails to hit first fiscal quarter targets

Lenovo to slash 3,200 jobs after it fails to hit first fiscal quarter targets
Abhimanyu Ghoshal
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Abhimanyu Ghoshal

Managing Editor

Abhimanyu is TNW's Managing Editor, and is all about personal devices, Asia's tech ecosystem, as well as the intersection of technology and Abhimanyu is TNW's Managing Editor, and is all about personal devices, Asia's tech ecosystem, as well as the intersection of technology and culture. Hit him up on Twitter, or write in: [email protected].

Following a disappointing fiscal first quarter this year, Chinese PC and mobile device maker Lenovo said it would cut 10 percent of its non-manufacturing positions as part of a $650 million cost-cutting program — affecting 3,200 jobs in total.

The company’s net income declined 51 percent year-over-year to $105 million, even though its global PC market share rose to a record high of 20.6 percent. Lenovo’s quarterly revenue also rose by 3 percent to $10.7 billion, but missed analyst expectations for $11.29 billion.

The company’s net income declined 51 percent year-over-year to $105 million, even though its global PC market share rose to a record high of 20.6 percent.

In an effort to spur sustainable growth, the company plans to streamline its product portfolio with “fewer, more clearly-differentiated models” and will look to Motorola — which it bought from Google last year for $2.91 billion — to take the lead in designing, developing and manufacturing smartphones.

Slashing 3,200 jobs means that Lenovo will lose 5 percent of its total population of around 60,000 people worldwide. The move will save the company about $1.35 billion annually.

Lenovo’s layoff announcement follows Microsoft’s decision to cut 7,800 jobs from its phone division last month.

Lenovo 1st Quarter Fy15-16: Tough Markets, Solid Results (PDF) [Lenovo]

Read next: Lenovo used a hidden Windows feature to ensure its software could not be deleted

Image credit: Gil C / Shutterstock.com

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