Lenovo to lay off 2,500

CHINA'S LENOVO, the third largest global brand name PC manufacturer, said Thursday that it's losing money and will cut executive pay and lay off 11 per cent of its employees.

The company said it expects to report a loss during the quarter just ended, so it will slash executive pay packets by 30 to 50 per cent and eliminate about 2,500 jobs, including some management positions.

It foresees booking a restructuring charge of about $150 million, mostly in the first quarter of this calendar year, and expects to reduce its costs by about $300 million in its fiscal year ending March 31, 2010. Lenovo shares plunged 26 per cent in Hong Kong to US 24.6 cents.

Lenovo will also consolidate its Asia Pacific and China operations to help reduce overhead. µ

L'Inq
AP