A shakeup announced by Lenovo Group on Thursday means many comings and goings for its operations in RTP and Raleigh.
Lenovo Group is moving its corporate headquarters staff and 70 jobs to the Triangle and its new chief executive officer will be based in the Triangle, the company said. Lenovo plans to move a call center operation in Atlanta and a logistics unit in Boulder CO to North Carolina as well.
However, Lenovo will also cut some one-sixth of its Triangle-based workforce. Ray Gorman, external affairs manager for Lenovo, said between 300-350 jobs will be cut.
Lenovo’s desktop PC operations will be consolidated in China. However, ThinkPad laptop operations will remain in the Triangle, Gorman said.
Triangle workers for Lenovo are former IBM employees who became part of Lenovo when the Chinese-based company paid $1.25 billion to acquire Big Blue’s personal computing unit last year.
Lenovo is building a new campus in Morrisville. The company is investing $84 million and has promised to bring 400 new jobs to North Carolina to help staff the 500,000 square-foot campus, which was announced last October. Lenovo was offered some $11 million in incentives by the state of North Carolina and the city of Morrisville to build the new offices
In all, Lenovo will be laying off some 1,000 workers, or some 5 percent of its 21,400-member workforce.
Chief Executive Officer William Amelio, who recently joined Lenovo from Dell, announced the restructuring of Lenovo during a conference call.
“We still have some inefficiencies that leave us less competitive than I want us to be,” Amelio said. “This plan makes Lenovo a much stronger company.”
The layoffs, restructuring and movement of people and resources will produce an estimated $250 million a year in savings, Amelio added.
Lenovo’s corporate headquarters staff in Purchase, NY will be relocated to North Carolina, Lenovo spokesperson Julie Gottlieb told WRAL. The “small group”, or some 70 people, represents corporate legal, finance, human resource, communications, marketing and sales responsibilities, the spokesperson said. Some executives and areas of responsibility are already based in North Carolina.
The move of corporate staff will enable “more face-to-face interaction”, Amelio said.
Citing “severe competitive pressure”, Amelio said that desktop computer operations would be “centralized” in China where “most of our people are located”.
More global supply chain operations also will be moved to China, the CEO said.
As part of a corporate reorganization, Amelio said he was “streamlining” the corporate bureaucracy. “Geographic managers will report directly to me,” he added. They would be empowered to “make faster, quicker decisions”.
The parent corporation of Lenovo is based in China.
Lenovo Group was formed when Lenovo purchased the IBM Personal Computing division last May. The IBM operation was located in RTP. Lenovo acquired some 1,800 employees as part of the deal.
Ameilo and his family will be relocating to the Triangle from Singapore, the company spokesperson told LTW.
Ameilo replaced former IBM executive Stephen Ward as head of the Lenovo Group in December. Ameilo had been president of the Asian-Pacific and Japan division of Dell.