Chinese PC giant Lenovo is cutting or moving 1,400 jobs worldwide - 5% of its global workforce - in an effort to reduce expenses and make the company more efficient.
The world's fourth largest computer manufacturer said last month the restructuring would take place over the next 12 months and was expected to save the company around US$100million in its 2007 fiscal year, which began on April 1.
"There is no doubt we have made strong progress in the past year, but it's clear we need to further accelerate that progress to be as profitable and cost efficient as the rest of the industry," Bill Amelio, Lenovo president and CEO, said in a statement announcing the cuts. "Today's actions are necessary to enable us to reduce expenses and grow our business."
Around 750 of the reductions will involve the transfer of positions to emerging markets closer to the company's suppliers and manufacturing operations, so the total number of positions lost will end up being approximately 650 - over half of these coming from its global headquarters in the US.
Lenovo Middle East, which employs 30 people, said it would not be affected by the restructuring.
The shake-up is part of Lenovo's efforts to kick-start sales outside Asia. In Q1 the vendor was finally caught by rival Acer, losing its number three spot in the worldwide PC rankings to the Taiwanese firm, according to Gartner; IDC had the pair tied for third place.
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