Feeds

Lenovo 'planning' to slash 200 jobs

Management reshuffle expected

Secure remote control for conventional and virtual desktops

Chinese computer maker Lenovo looks set to axe 200 jobs at the firm’s headquarters in Beijing.

According to Reuters, which quoted state reports in China on Wednesday, the vendor has cited tough economic conditions for the decision to slash jobs.

Caijing magazine, which cited anonymous company sources, reported that only about ten of those redundancies will affect senior execs at Lenovo.

The mag said that Lenovo, which acquired IBM’s struggling PC unit for $1.25bn – as well as an assumption of debt – in 2005, plans to announce a major restructuring plan on 8 January that will include a management reshuffle.

Big Blue’s decision to sell its PC unit saw Lenovo take on a business that had suffered nearly $1bn in losses in the three years leading up to the acquisition.

More recently IBM, which still has shares in the unit, has continued to retreat from Lenovo following a series of stake sell-offs over the past year.

According to Caijing Lenovo has frozen hiring at the firm and also plans to fire contractors at its factories.

Lenovo’s president for the Asia Pacific region, David Miller, is reportedly expected to quit. The company’s Chen Shaopeng, who is currently president of the Greater China region, would lead newly merged Greater China and Russian operations with its Asia-Pacific ops.

The firm, which could not be reached for comment at time of writing, saw its profits tank for the quarter ended in September when it pulled in pre-tax income of $39m, down from $125m for the same three months of 2007.

Lenovo's chairman Yang Yuanqing blamed the “global economic downturn” as well as “a shortfall in the execution of our strategic plan” for the vendor’s poor Q2 performance. ®

Beginner's guide to SSL certificates

More from The Register

next story
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.