RESEARCH TRIANGLE PARK, N.C. – The world continues to wonder if in fact Lenovo is preparing to cut another 1,000 workers.
Global media speculation on Tuesday following reports from the South China Morning Post in Hong Kong and Reuters were not quieted by Lenovo chief media spokesman Ray Gorman. Tasked with contacting reporters inquiring about the layoff rumors, Gorman said simply that he had a short statement.
"Our policy is not to confirm or deny rumors," Gorman said from Lenovo’s headquarters in Morrisville.
However, the media are like sharks in a feeding frenzy, the possibility of job cuts being the blood in the water. This story won’t go away any time soon.
The cost-cutting measure did provide Lenovo’s stock with a small 1.3 percent increase overnight on the Hong Kong stock exchange where it is traded.
And various analysts also came forth, uttering words of wisdom about Lenovo’s need to cut costs.
If Lenovo makes the cuts, the Hong Kong newspaper said 400 would take place in China, Taiwan and Hong Kong.
That report could mean another slice will be taken out of the 1,450 or so Lenovo workers based in the Triangle. More than 300 N.C.-based employees – including mostly former IBMers who joined Lenovo in 2005 when the company acquired IBM’s personal computer business – were let go in job cuts last year.
"Any action taken by Lenovo to reduce its costs is positive," Joseph Ho, an analyst at Daiwa Securities in Hong Kong, told Bloomberg. "Costs are still too high compared to its rivals."
Unfortunately, the workers that could be let go won’t see much positive in any cutback announcement, especially after the global stock quake on Tuesday.