Lenovo announces 11 percent job cuts

China's Lenovo, the world's fourth largest personal computer maker, is preparing to cut 2,500 jobs, about 11 percent of its global workforce, according an announcement posted at Hong Kong Exchange's website Thursday.

The company will also cut 300 million U.S. dollars of spending in the fiscal year ending on March 31, 2010, the announcement reads.

Lenovo suspended trading on the Hong Kong stock market Wednesday amid the speculation of an imminent restructuring. The trading will resume Thursday.

The company was forced to restructure by weak performance and "potentially huge losses" in the fourth quarter of 2008, according to the statement.

Under the restructuring plan, Lenovo will merge its Asia Pacific operations with its Greater China and Russia operations, and its Toronto-based customer service center with Morrisville center in North Carolina of the United States.

Source : PNA
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]