Lenovo may have managed to become the worlds 3rd manufacturer of PCs, but that isnt 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 worlds 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 its clear we need to further accelerate that progress to be as profitable and cost efficient as the rest of the industry. Todays actions are necessary to enable us to reduce expenses and grow our business," said president and CEO William J. Amelio.
News source: DailyTech