Following a disappointing last quarter of business, the world’s largest PC maker and fifth largest smartphone firm would be laying off 3,200 staffs in order to improve her financial health.
The Chinese company admitted they are facing challenges and have resolved to taking advantage of consolidation by becoming even more efficient and reducing costs to ensure sustainable and profitable growth. Those affected by the cut would be 10% of non-manufacturing headcount (about 5% of their total population of about 60,000 people worldwide).
In addition to the layoffs, Lenovo will write off $300 million in unsold smartphones, and spend $600 million to restructure its smartphone businesses so that Motorola and Lenovo are more strategically aligned.
Oh, so Motorola was acquired by Lenovo. Also, how does a quarter year loss lead to 5% headcount layoff? Seems like they were looking for an excuse to do it anyway...
ReplyDelete