Lenovo is only one of the growing number of companies slashing their work force due to the poor economic state. Lenovo plans to announce restructuring changes on January 8, 2009, which it hopes will get it out of debt, since acquiring IBMs PC unit back in 2005 for $1.25 Billion.
Recently, IBM has been moving back from the Lenovo series after it had a number of sell-offs over the past year, where customers are not adopting the brand as expected in North America. IBM, which currently still has shares in Lenovo, has a sales agreement to continue selling desktops and laptops until 2010, where both companies could see a departure if sales continue to decline.
Lenovo is currently the largest computer manufacture in China, and fourth largest in the world, from both its desktop and laptop line up. Lenovo saw $16.4 billion in revenue in 2008, from its entire line up of products including, tablet PCs, monitors, projectors, desktop and laptops.