If the recession in key markets continues next year, recovery could be difficult.
Lenovo led the global PC market with 22.4 percent market share, followed by HP Inc with 21.1 percent and Dell Technologies with 16.7 percent.
Global technology brand Lenovo has reportedly started laying off employees as its PC business has suffered significantly from the economic downturn.
According to a report in CRN, the Levono layoffs are “part of an approximately $115 million cost-cutting plan.”
Lenovo CEO Yang Yuanqing had briefed in February about an upcoming “headcount adjustment” as part of a broader cut in spending.
The company had approximately 75,000 employees at the end of fiscal year 2022.
“As our CEO Yuanqing Yang said in our most recent quarterly earnings announcement, we are reducing operating costs and adjusting headcount where necessary and appropriate,” a company spokesperson said in a statement.
“We continue to invest in the areas that accelerate the growth and overall transformation of the company,” the spokesperson told WRAL TechWire.
A “severe downturn” in the PC and smartphone markets caused the company’s revenue to fall 24 percent (year-over-year) to $15.3 billion and net profit to $437 million in the quarter ended 31 December.
The company had alluded to future job cuts as part of its overall cost reduction.
Lenovo CFO Wong Wai Ming had blamed the downturn on a “confluence of global economic challenges and dynamic shifts in market demand”.
In the March quarter (Q1 2023), weak demand, excess inventories and a deteriorating macroeconomic environment drove global shipments of 56.9 million traditional PCs, a massive 29 percent drop from the same quarter last year, according to the International Data Society (IDC).
Lenovo led the global PC market with 22.4 percent market share, followed by HP Inc with 21.1 percent and Dell Technologies with 16.7 percent.
According to the report, the pause in growth and demand also gives the supply chain some room to make changes as many factories begin to explore manufacturing opportunities outside of China.
If the recession in key markets continues next year, recovery could be difficult.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)
