MORRISVILLE – Lenovo, the world’s largest PC manufacturer which has been hit hard by a sharp decline in computer sales, is making layoffs. Workers were “blindsided right before Christmas,” one said.
An affected executive confirmed being laid off to WRAL TechWire, and other reports have been made at a layoff news website.
Lenovo confirm the cuts in an emailed statement but denied reports the layoffs would hit 10% of the company’s employees.
“Lenovo has made a small number of layoffs in the North America team this week, so the 10% figure you have heard is inaccurate,” a spokesperson said. But a number of cuts will not be provided at this time.
“As I’m sure you appreciate this is an ongoing process so I can’t confirm anything on numbers, out of respect for any individuals impacted,” the spokesperson said. ”
The cuts come despite Lenovo Chair and CEO Yang Yuanqing telling Bloomberg News in early November that the company was not considering large-scale layoffs. He didn’t elaborate, Bloomberg reported, but quoted him as saying: ““We must ensure the competitiveness of our business.”
Last day at least for some affected employees is Jan. 13 unless they can find another job within Lenovo, the exec said.
Lenovo has in recent months consistently listed open jobs at the Lenovo website.
“As you well know, Lenovo has changed a lot as a company over the years you have been following us, so not only do we regularly review our cost structure to align with external market dynamics, but we are also rebalancing some of our resources towards the growth engines in the business,” the spokesperson explained/
“Where open positions are available employees are welcome to apply and we have a good number of open roles in our transformation businesses, in particular in SSG – our services and solutions business.”
The company made some layoffs and froze pay in 2020.
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Layoffs began Thursday and could hit as much as 10% of the company’s workforce, which numbers more than 60,000, the sources said.
Lenovo operates one of its two global headquarters in the Triangle. The other is located in Beijing. Lenovo is a Fortune Global 500 company with operations in 180 countries with nearly $72 billion in revenue for its fiscal year 2022.
HP, one of Lenovo’s top competitors, recently announced plans to lay off 6,000 workers.
PC sales have plunged after surging worldwide during the COVID pandemic.
More tech layoffs: HP says it will lay off up to 6,000 workers
‘5 minutes notice’
The layoff news came with little notice, according to the executive who asked not to be identified.
“It’s happening today, a lot of experienced and good, quality people are being affected.”
And:
“Layoffs hitting this week. 10% reduction is rumored.”
The executive also said : “I have heard here and there that company wide there will about a 10% reduction in staff.”
Given the PC sales plunge, which represents a substantial amount of Lenovo revenues, and layoffs in the high tech sector, the executive said layoffs were not totally unexpected.