Computer-maker Lenovo to axe 2500 from its workforce


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Computer-maker Lenovo Group is slashing its workforce by 11 per cent as it forecasts its first loss in three years.

Lenovo will eliminate about 2500 jobs, leading to savings of about $300million (£197.9million) in the year ending March 2010.

It expects the slump in the computer market to continue beyond then.

The computer maker, which bought IBM's PC division in 2005, said it does not expect the market to bottom out this fiscal year.


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Shrink: Lenovo's market share in China has been eaten into by rivals Hewlett-Packard and Dell


The company is also curbing executive pay by 30-50 per cent as part of a costsaving programme. It will also combine its China and Asia-Pacific divisions.

Lenovo aims 'to ensure that in an uncertain economy, our business operates as efficiently and effectively as possible, and continues to grow in the future,' chairman Yang Yuanqing said.

Its global market share shrank to 7.7 per cent in the third quarter of 2008, from 8.2 per cent a year earlier, according to research firm IDC.

In China, where Lenovo earns more than 40 per cent of its total revenue, it faces increasing competition from Hewlett-Packard and Dell.

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