Lenovo CEO resigns after quarterly losses announced

CEO of Lenovo Group, William J. Amelio, resigned, as the World's fourth largest PC manufacturer announced a $96.7 million quarterly loss on Thursday, following declining sales as a result of the current economic climate.

The Associated Press reported on Thursday that Amelio will be succeeded by Yang Yuanqing, who was CEO of the company from 2001 until Lenovo acquired IBM's PC unit in 2005.

Amelio said that he is leaving because his three-year contract with the Beijing-based company has ended. He has also resigned from the board of directors.

Lenovo, which announced plans to cut 200 jobs at the beginning of this year, saw its sales fall 20 percent in the quarter ending December 31 2008, compared to the same period in 2007.

Amelio said that the company has struggled due to slow sales growth in China and a reliance on corporate customers. "The fact that these markets, which are our sweet spots, have been hit hardest by the global economic conditions means that our financial performance has been impacted more profoundly than others in the industry," Amelio said in a conference call with reporters.

Amelio became CEO of the company in 2005, overseeing the integration of Lenovo and IBM's PC unit, and is credited with developing consumer sales in Europe, India and other global markets. While Yang praised Amelio's contribution, he also complained that, "we have not adequately expanded our business and developed our business model in the past few years."

Yang said that the job of CEO will be tougher now that it also includes the company's global operations.

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