China-based Lenovo Group is hoping to improve its bottom line with the layoffs of about 3,200 positions around the world.
Lenovo announced this decision in its financial report for the first quarter of the 2015/16 financial year. The company said facing the dramatic decline of PC sales, Lenovo Group must continue to improve effectiveness and cut expenses. They will reduce about 3,200 non-manufacturing employees around the world, accounting for 10% of its total non-manufacturing employees and about 5% of its total employees. The company reportedly has 60,000 employees worldwide.
With the employee layoffs, Lenovo Group is expected to save about USD650 million during the second half of 2015/16 financial year.
According to Lenovo's financial report for the first quarter of 2015/16 financial year, the company's operating revenue reached USD10.7 billion, which was about CNY68.3 billion, a year-on-year increase of 3%; and its net profit attributable to shareholders was USD105 million, which was about CNY670 million, a year-on-year decrease of 51%.
During the reporting period, Lenovo's PC sales were 13.5 million units, a year-on-year decrease of 7.1%; meanwhile, its tablet sales were 2.5 million units, a year-on-year increase of 3.8%.
In addition, Motorola contributed 5.9 million units smartphone sales to Lenovo, a year-on-year decrease of 31%.