Lenovo slashes jobs in wake of Motorola disappointment
Chinese firm to shed 10% of white-collar workforce
Chinese tech giant Lenovo will axe 10% of its white-collar workforce following the halving of quarterly profit attributed to its acquisition of the Motorola brand from Google last year, Reuters reported.
Lenovo paid $2.91bn for Motorola, which was a loss-maker for Google. But the Chinese company has not been able to turn the brand around and shipments of its handsets declined 31% in the second quarter, to 5.9m.
Lenovo CEO Yang Yuanqing said the cutting of 3,200 non-manufacturing jobs would save the company around $1.35bn annually and help it compete in the "toughest market environment in recent years".
"I still believe mobile is a new business we must win," Yang told Reuters. "I still believe this acquisition [Motorola] was the right decision... Except Apple and Samsung, there is no third strong [global] player. I believe that will be Lenovo."