Lenovo Cuts 450 Jobs in China

From PC World: Lenovo Group will cut 450 jobs in China, expanding efforts to cut costs as the company struggles with sagging PC sales.

The affected Chinese employees all work in positions that support Lenovo's global business, the company said in an e-mail statement.

"While our business in China remains very strong, many of our global support functions have employees based in China. Although difficult, these reductions are a necessary part of our response to the global economic downturn," Yang Yuanqing, the company's CEO, said in the statement.

The latest round of job cuts come on top of 2,500 layoffs announced last month and highlights the severity of the challenges that Lenovo now faces. China's largest PC maker, Lenovo has seen sales drop in its home market, a problem that is compounded by sinking sales in India, Europe and North America.

Earlier this month, former CEO William Amelio stepped down from the company. The announcement came at the same time Lenovo announced a 20 percent drop in fourth-quarter sales. Amelio was replaced by Yang, who stepped down as chairman to take the CEO title he held prior to the 2005 acquisition of IBM's PC division. Liu Chuanzhi, Lenovo's former chairman, returned to take his old position.

View: Article @ Source Site