Lenovo to cut 1,000 jobs

[OhioChick]

< 28 Feb, 2007 0135hrs ISTREUTERS >

BEIJING: Lenovo Group Ltd, the world's No. 3 personal computer maker, has approved a preliminary plan to slash more than 1,000 jobs to cut costs as price competition remains intense, a source close to the company said on Tuesday.

The job cuts would fall mostly in the United States — the majority would be layoffs, while some workers would be redeployed — but some of the restructuring would also take place in China, said the source.

A company said Lenovo would not confirm or deny the comments. The move would cost between $50 million and $75 million in a one-off writeoff, the source said. Lenovo hopes the plan will save it between $150 million and $175 million annually in a move that comes about a year after a similar plan to lay off 1,000 workers was announced. "The job cuts in China, indicate that the price pressures are more intense than thought," said an analyst.

http://timesofindia.indiatimes.com/NEWS/Intl_Business/Lenovo_to_cut_1000_jobs/articleshow/1696895.cms

[Dont_Bogart_the_Pretzel]

1. Didn't IBM just change its lcd monitors to Lenovo?

if so, then this "layoff" was scheduled from the TOP!!

[OhioChick]

2. From 2004:

IBM sells PC group to Lenovo

http://news.com.com/IBM+sells+PC+group+to+Lenovo/2100-1042_3-5482284.html

[Xipe Totec]

4. IBM sold their laptop business to Lenovo n/t

[CountAllVotes]

8. yeah and those Lenovo "ThinkPads" are really crap too

I have one that I got used and I almost cut myself on the outside casing on it. It is cheap and tacky and it is not a ThinkPad to me. I know it won't last long, that is for sure! IBM has made a huge mistake by outsourcing what was once a great AMERICAN company.
:evilfrown:

GREED = the winner again!

:kick:

[ChromeFoundry]

3. "The job cuts would fall mostly in the United States"

did they get pressured by Wal-Mart for cheaper laptops?

--
Thanks IBM... it hardly hurts this time since we were already in the bent-over position
--

[mitchleary]

5. When all

the jobs are in China who in the hell do they think are going to buy a $1000 laptop? Surely not someone making 2 bucks an hour.

[ChromeFoundry]

6. India n/t

[OhioChick]

7. You got it. n/t

[OhioChick]

9. Lenovo shares rise on report of job cuts

2007/2/28

Shares of Lenovo Group Ltd., the world's third-largest personal-computer maker, rose after a report said the company may cut 1,000 jobs globally to reduce costs.

The stock rose 1.3 percent to HK$3.13 as of the end of trading in Hong Kong, after gaining as much as 1.9 percent. By comparison, the benchmark Hang Seng Index fell 1.2 percent.

The job cuts may reduce costs by as much as $150 million a year, Hong Kong's South China Morning Post reported Tuesday, citing an unidentified industry official. Lenovo may book a charge of $60 million from the cutbacks, including 400 positions in China, Hong Kong and Taiwan, the newspaper said.

"Any action taken by Lenovo to reduce its costs is positive," said Joseph Ho, an analyst at Daiwa Securities in Hong Kong. "Costs are still too high compared to its rivals."

http://www.chinapost.com.tw/news/archives/business/2007228/103498.htm

Cut jobs and shares rise........