Lenovo Group announced 2500 global layers

A slowdown in China's economy leads to pre-losses and layoffs

Lenovo Group announced that its financial report for third quarter of 2008 may face major losses, and the Board of Directors announced a "resource allocation" plan, which is expected to cut 2500 employees around the world, accounting for 11% of the total number of employees. Lenovo also plans to reduce its executive compensation and benefits by 2009 to 30% during 50%.

Lenovo plans to cut jobs by about $ March 31, 2010 in the fiscal year ending 0.3 billion. The restructuring cost generated by layoffs is $0.15 billion, which will be reflected in the fourth quarter of the fiscal year ending in March 31, 2009.

Lenovo Group warned that it would face significant losses in the third quarter of December 31, 2008. Lenovo group explained that the potential loss was mainly due to the unprecedented economic challenges facing the world, this results in a decline in the demand for personal computers and related products. Lenovo's sales and gross margin have fallen sharply due to the slowdown in China's market economy, the main market of Lenovo.

Lenovo Group has made four downsizing since it became international in 2004. In early 2004, Lenovo, who looked back from its early diversification Road, reorganized its organizational structure, set up four departments: information products, mobile communications, IT services and international businesses, and announced 600 million people to be laid off.

Throughout 2005, Lenovo was working on integration with the ibm pc department. Integrate the PC business in China with IBM's global PC business in terms of product operation, supply chain, and sales system, and set global directors in each field to report to the CEO directly. At the same time, the global market is divided into five regions: Asia Pacific, America, EMEA (Europe, Middle East and Africa), China, and India (not yet prepared for preparation, in the Asia Pacific region), each region is responsible for sales and services in its own region.

By the end of 2005, new Lenovo, which was initially merged, was hired as CEO of former Dell Asia Pacific and Japanese regional leader emeio, replacing former IBM executive Stephen Ward. Along with the arrival of Amrio, there were four senior executives, including former Dell China President Mai Dawei and former Dell Japan sales director Sotaro Amano.

In early 2006, Amrio, the new company, Integrated Lenovo's global sales system and managed its desktop business in China. It also announced the layoff of 1000 people. The layoff was mainly concentrated in three regions except Greater China, saving about $0.25 billion a year. In September of the same year, Liu Jun, head of global supply chain, left Lenovo and was taken over by Smith, a former Dell senior executive.

In early 2007, the three regions that have just been laid off announced another 1400 jobs, but half of them will be transferred to emerging markets such as China. Lenovo Group also optimizes global supply chains to bring them closer to suppliers to improve operational efficiency.

Lenovo's main competitor, Hewlett-Packard, announced a September 2008-person layoff plan in 24.6 thousand, and Dell announced a 2007-person layoff in 8800.

Yang Yuanqing, chairman of Lenovo Group's board of directors, said: "Although we have successfully integrated the ibm pc business over the past three years, our performance in the last quarter has not met our expectations. We are now taking these initiatives to ensure that Lenovo's business operations are as effective and efficient as possible in the current unclear economic environment and will continue to grow in the future. "

Sales manager of two regions resigned

Lenovo Group spokesman Chen Danqing told NetEase Technology that due to the global economic slowdown, some senior managers will leave.

The two regions of Lenovo Group will leave their senior vice president for sales, including former Lenovo Group senior vice president and Asia Pacific President David Miller and Scott DiValerio, group senior vice president and president of America region, who led the Americas sales organization in 2008.

Lenovo Group will integrate the current independent Greater China and Russia regions and the Asia Pacific region into one region-Asia Pacific and Russia (APR ).

Asia Pacific and Russia will be held by Chen Shaopeng, Lenovo Group's current senior vice president and president of Greater China and Russia. After the adjustment, Lenovo Group's senior vice president and Asia Pacific President David Miller will leave Lenovo for a while to assist in the transition. Xia Li, former director of Lenovo Greater China sales, is the general manager of Lenovo Greater China and the overall business of Lenovo Group in mainland China.

Scott DiValerio, group senior vice president and president of America, who led the America region sales organization in 2008, will leave Lenovo. As part of the optimization work of Lenovo Group, the Americas region will report to Rory Read, senior vice president and president of operations.

In order to solve this problem, Lenovo Group's financial report shows that it will cut down its employees, mainly in management and administrative positions, and cut administrative staff's salary, including bonuses and options, the customer service centers in Toronto, Canada, were relocated to Morrisville in North Carolina.

William Amrio, President and CEO of Lenovo Group, said: "The initiatives we have taken today are not easy. We will show our caring and respect to our affected colleagues in the company. Today's news is heavy for all Lenovo employees, but we believe that the company's initiatives today are necessary for Lenovo to compete in the current economic environment. In the long term, it will also help us better provide superior products and services to global customers ." (