Lay off employees: This global PC company is carrying out layoffs in its efforts to reduce operational costs and make necessary and appropriate workforce adjustments.
Layoffs News: Global technology brand Lenovo has reportedly started laying off employees as its PC business has taken a hit amid the economic slowdown. The job cuts at Levono are part of a roughly $115 million cost-cutting plan, according to a report in CRN.
Lenovo CEO Yang Yuanqing in February informed about the upcoming workforce adjustments as part of a broader reduction in spending. The company had about 75,000 employees at the end of the 2022 fiscal year.
What did the company spokesperson say in the statement
As stated by our CEO Yuanqing Yang in our most recent quarterly earnings announcement, we are reducing operating expenses and making necessary and appropriate workforce adjustments, a company spokesperson said in a statement. We continue to invest in areas that drive growth and the overall transformation of the company, the spokesperson told WRAL TechWire.
The company’s revenue decreased by 24 percent on an annual basis.
The company’s revenue declined 24 percent (year-on-year) to $15.3 billion and net income to $437 million in the quarter ended December 31 due to a severe downturn in the PC and smartphone markets. The company had hinted at job cuts as part of overall cost cutting in the future.
Lenovo CFO Wong Yi Ming blamed the slowdown on the confluence of global economic challenges and dynamic changes in market demand. According to International Data Corporation (IDC), in the March quarter (Q1 2023), global shipments of traditional PCs hit a record 56.9 million, up 29 million from the same quarter last year, as a result of weak demand, excess inventory and deteriorating macroeconomic environment. There is a huge percentage drop.
Lenovo leads the PC market
Lenovo leads the global PC market with 22.4 per cent market share, followed by HP Inc at 21.1 per cent and Dell Technologies at 16.7 per cent. According to the report, the stagnation in growth and demand is also giving the supply chain some wiggle room as many factories are looking for production options outside China. If the slowdown in major markets stretches into next year, the recovery could be slow.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
