Lenovo cuts 1,000 more workers

The third largest PC maker in the world Lenovo Group has approved a plan to cut 1,000 workers in the near future to enhance competitiveness.

The majority of job losses will be in the US market. However, some workers will be hired if needed.

The restructuring process will not only take place in the US but also in China. It is expected that this restructuring process will cost Lenovo a budget of about $ 50-75 million.

Lenovo spokesman did not confirm nor deny the above information.

Lenovo hopes that this plan to reduce labor this time will help the company save about 150-175 million USD per year. Last year Lenovo also made a similar plan to cut workers.

The reason for Lenovo to continue to implement a plan to cut workers similar to the plan launched last year is because the plan last year did not meet its intended cost savings.

Lenovo said the plan to cut workers last year was part of the company's $ 250 million savings strategy in 6 to 12 months after spending $ 1.25 billion to buy back the unit. IBM PC.

Mark Po, an analyst with UOB Kay Hian (Hong Kong), said Lenovo's job cuts showed that the competitive pressure on the PC market - especially the Chinese market - is growing. than.

Despite the fierce competition from rivals, Lenovo still gains a lot of market share thanks to product price cuts and abandoning the market like the US or Japan - markets that are considered storm harmony.

Hoang Dung