Monday, February 9, 2009

After losses Lenovo announces management changes

Chinese PC maker Lenovo, which today announced a loss of $96.7 million for the quarter ended December 31, said CEO William J. Amelio resigned in a management reshuffle.

While Lenovo founder Liu Chuanzhi would return as the chairman of the company, present chairman Yang Yuanqing will return as CEO in the place of Amelio, Lenovo said in a statement.

Observing that the next several quarters will be "very challenging for Lenovo and the rest of the PC industry", Lenovo said the worldwide restructuring program announced on January 8 is expected to save the company approximately US$300 million in the 2009/10 financial year.

"In the past quarter, same as many other companies, Lenovo was deeply impacted by the global economic turmoil," said Lenovo CEO Yang Yuanqing. "We have taken actions to ensure that in an uncertain economy, our business operates as efficiently and effectively as possible, and continues to grow in the future."

The PC maker said its global sales of US$3.59 billion for the reporting quarter is 20 per cent less compared with the same period of 2007.

"The Group's results were impacted principally by slowdown of the Chinese PC market in which it has significant market share and demand reduction in the worldwide commercial PC segment," the company statement said.

On January 9, Lenovo had announced that the company is going tolay off 2,500 employees, nearly 11 per cent of its work force.

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