Lenovo to Cut 1,400 Jobs Worldwide

Lenovo may have managed to become the world's 3rd manufacturer of PCs, but that isn't stopping the company to once again, just like last year, fire some of the people that helped them get to where they are today. The company will cut 1,400 jobs globally, about 5% of its workforce, to save roughly $100 million USD during the 2007-2008 fiscal year. 750 of the jobs will be transitioned to overseas locations where labor is cheaper and the remaining 650 positions will simply be eliminated. The company will also take a pre-tax restructuring charge of between $50 to $60 million USD for its first fiscal quarter which ends on Jun 30, 2007.

"To win in the PC industry, our path is very clear. We must deliver the world's best-engineered PCs, offer our customers an unrivaled ownership experience, and grow faster and more profitably than the rest of the industry. This means we must make our organization more efficient by reducing expenses. There is no doubt we have made strong progress in the past year, but it's clear we need to further accelerate that progress to be as profitable and cost efficient as the rest of the industry. Today's actions are necessary to enable us to reduce expenses and grow our business," said president and CEO William J. Amelio.

News source: DailyTech

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Lenovo had been one of the primary builders of IBM desktops and Thinkpads for years before acaq. They have a nice big new building off of 54 just outside of RTP.

The reasons for IB...oops...Lenovo making these cuts is crystal-clear: STOCKHOLDERS.

Every company has a desire to be profitable. When you're profitable, you can pay employees, you can pay dividends on stocks, you can bribe...oops...."give gifts" to governments to chose your brand and make deep price-cuts to large companies - all in the intent to be MORE profitable. After being caught in a few RIFs (Reduction In Force) and lay-offs before, I know the reasons why - but that doesn't make it better, or good, or right.

Here's a nifty idea I came up with a few years ago; some may think that it smacks of socialism, but I'll throw the bone out and see who chomps at it:

Cap all Executive Salaries (including stock shares & options) at $1,500,000.00

Take all excess profits (less employee salaries & benefits, operating expences, debt control, taxes & tariffs, etc) and subsidize programs such as all medical insurance premiums, in-workplace daycare.

Any excess profits are split 50/50, with 1/2 going towards the community and the other 1/2 back into the company to spur company growth and to making the workplace environment more liveable and functional.