Lenovo, which has made major efforts to drive PC sales in Brazil, is gutting its work force there in order to cut costs.
Some 4,200 of 5,000 jobs are being cut as Lenovo moves its PC manufacturing to a much smaller facility, according to Brazilian media.
Lenovo employs some 55,000 people worldwide in 160 countries, according to its website.
A senior Lenovo executive in Brazil told the newspaper Valor that the job cuts were necessary to cut costs in order to “adapt costs to a new market reality.”
“The upside is that the market has remained at about the same size for the last three quarters and we believe that the decline is over,” Silvio Stagni, Lenovo Brazil’s president of the computer division, told Valor.
“Everyone has been hurt [by the recession] and has been adopting a conservative purchasing behavior, but despite the crisis we have seen over the last few years it is only a matter of time until the country gets back to being one of the top markets in the world for electronic items.”
U.S.-based ZDNet picked up on the Valor report Monday. It noted that Lenovo ranks third in PC sales with 14 percent market share, trailing Dell and HP.
Lenovo made a big bid for Brazil-based PC manufacturer Positivo four years ago then later acquired CCE but in 2015 sold that firm back to its original owners, according to ZDNet. The CCE acquisition made in 2012 is noted as one of the highlights on Lenovo’s corporate timeline.
