Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • Israeli special forces attack Hamas base inside Gaza Strip

    Read more

  • Iraqi parliament resumes session on key appointments

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

Computer giant Lenovo to axe 2,500 jobs

©

Latest update : 2009-01-08

Chinese computer giant Lenovo announced on Thursday it would cut about 2,500 jobs, roughly 11 percent of its worldwide workforce, after suffering losses due to the global economic crisis.

AFP - Chinese computer giant Lenovo announced Thursday it would cut about 2,500 jobs, roughly 11 percent of its worldwide workforce, after suffering losses due to the global economic crisis.

 

The company said in a statement to the Hong Kong Stock Exchange that the "resource redeployment plan" would help save 300 million US dollars in the financial year ending March 31, 2010.

 

"This plan, when fully implemented, is likely to have the effect of... reducing the number of the group's worldwide employees by approximately 2,500, representing approximately 11 percent of the group's total workforce," it said.

 

The company said it will also merge its operations in China, Asia Pacific, and Russia to increase efficiencies.
 

Lenovo, the world's fourth-biggest personal computer maker, said preliminary estimates showed it would make a loss in the final three months of 2008.

 

"The board believes that such potential loss is incurred mainly due to the unprecedented global economic challenges facing the world resulting in a reducing demand of personal computer and related products," the statement said.

 

Lenovo had seen reduced demand around the world, the company said, although it also specifically identified problems in China.
 
"The slowing down in the Chinese economy... has also affected what has historically been a major market for the group," it said.
 

It said that its gross profit had decreased significantly due to its relatively high proportion of sales in the commercial segment, where sales had dried up.

 

The company's shares price plunged 17.4 percent to 2.13 Hong Kong dollars (0.28 US) early Thursday, after trading in its stock was suspended Wednesday pending release of the profit warning.

 

Ample Finance Group's Alex Wong forecast a bleak outlook for Lenovo and predicted that the company would underperform in 2009. "This is one stock I won't buy," he told Dow Jones Newswires.

 

Hong Kong-listed Lenovo, which came to worldwide prominence when it bought IBM's personal computer unit in 2005, said in November last year that its net profit for the three months ending September 30 slumped 78 percent from a year earlier to 23.4 million dollars.

 

The drop in the third quarter followed the company's report of a surge of more than 200 percent in the 2007-8 financial year, citing strong growth in sales across the world. It also reported double-digit growth in sales in all its markets outside the United States in May last year.

 

Its president and chief executive officer, William Amelio, said in 2008 that Lenovo would continue to target new markets.
 

The company tried in 2007 to buy European personal computer maker Packard Bell, but was thwarted by a stronger bid by Taiwanese rival Acer.

Date created : 2009-01-08

Comments

COMMENT(S)