Lenovo to lay off additional 450 workers in China

Posted February 25, 2009

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— Lenovo, the world’s No. 4 PC manufacturer, is cutting another 450 jobs from its work force based in its homeland of China.

The cuts are in addition to the 2,500 layoffs Lenovo announced in January as part of a company-wide restructuring. Among the losses were 250 at the firm’s headquarters in Morrisville, but some 150 call center positions are being transferred to North Carolina.

The latest cuts, which the company announced Tuesday in China, affect jobs only in China, the company said. Most of Lenovo’s business is done in China.

In Morrisville, a Lenovo spokesperson said the new affects didn't affect North American operations.

"None planned," the spokesperson said. "but prefer not to speculate on the future."

"While our business in China remains very strong, many of our global support functions have employees based in China," Chief Executive Yang Yuanqing, who has a home in the Triangle, said, according to Chinese media reports.

"Although difficult, these reductions are a necessary part of our response to the global economic downturn,” he added.

The layoffs affect global support positions.

"In the face of continued global economic crisis, we must act decisively to reduce costs associated with global staffing and support functions to ensure our competitive strength and continue our effort to improve efficiency," Yang said.

Yang, who had been chairman, replaced William Amelio as chief executive officer earlier this month as part of a management shakeup. Amelio had been CEO for three years. The shakeup, which also included reductions in executive compensation, came after Lenovo reported a $97 million loss for the quarter ending in December.


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  • patrick85ed Feb 25, 2009

    Well NCSU began announcing lay-off's today.

  • BULLDOZER Feb 25, 2009

    My sister works for Lenovo and has since spinning off from IBM. They have been a great company to her, even paying for her to go back and get her MBA. She works very hard for them and has been assured that her job is safe.

  • personality Feb 25, 2009

    We can't compete with the labor costs of the jobs done overseas.

    We now have a recession that is just making it so much more tougher here in the U.S. on top of all the other competitive companys around the world.

    You only have to look at the Unions at Ford, GM, Chrysler........they have found they can no longer dictate pay, benefits and other perks that they once had control over.

    Unions now accept new terms or the companys will close thier doors and no one will have a job.

    Lenovo is not a factor or will not gain enough market share to survive against the other companys in my opinion.

    This maybe one China owned company that does not do well in the U.S.

    I also worked at one time with a company who sold thier business to Lenovo. This company did not sell thier business because it was a profitable one.......Lenovo might discover the same.

  • auldscot Feb 25, 2009

    If Lenovo or any of these companies wanted to keep from going "belly up" perhaps they might want to look at cutting other expenses.
    Having worked at Lenovo (and yes my position was eliminated in November), I know of a number of the executives that flew back and forth between the US & China on a regular basis and not always in coach. In this day of teleconferencing it is not necessary to travel every week. Yes, I agree some travel is required but not as much as was taking place.
    Perhaps some of the executives who profess to care about their employees so much can take a page from John Chambers. When Cisco was in trouble a few years back only take one penny in salary until the company is back on their feet.

  • pmnbunn Feb 25, 2009

    nancy- i know it is hard to loose your job but these companies are trying to stay afloat. They can cut 450 jobs or they can go belly up and EVERYONE who works for that company looses their job. i would say it's just business but it's really common sense cut some to save more.

  • nancyalis1 Feb 25, 2009

    I work as a contractor for this company & getting laid off on March 6th. The memo we received stated 450 POSITIONS were eliminated. I guess that's nicer than saying 450 people LOST THEIR JOBS. I don't know how people sleep at night. I agree,we need to keep jobs here

  • Mike27603 Feb 25, 2009

    Stop sending all our jobs over sea and we might have some here