The Lenovo Group, listed on the Hong Kong Exchange, announced on January 8 a series of resource adjustment programmes including a 2,500-employee global job cut for the first quarter of 2009, accounting for about 11% of its total number of employees, as well as cuts to salaries, remuneration and benefits of senior management including annual salaries and performance bonuses by 30% to 50% within the year.
The Lenovo Group also announced on January 8 that due to the continued slowdown of global economic growth, the company will cut support costs and other administrative expenses including accounting, human resources and marketing, and will combine what were two previously independently operated divisions into one "Asia Pacific and Russia Division" to lower operation costs.
In addition, Lenovo announced that it would move the customer service centre in Toronto, Canada, to North Carolina in the US to fully utilize local Lenovo offices and facilities. According to its own forecasts, the resource adjustment programmes will save Lenovo approximately 300 million US $ for the 2009/2010 fiscal year ending on March 31, 2010.
Lenovo disclosed that it expects to record a loss for the company's last financial part of the year which ended on December 31, 2008.
Yang Yuanqing, Chairman of the Board of Lenovo Group, said in a news release that although the integration of the IBM PC business for the past three years had been a success, the company's performance last quarter did not meet the expectations. "We are taking these actions now to ensure that in an uncertain economy our business operates as efficiently and effectively as possible, and continues to grow in the future."
By People's Daily Online
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