Lenovo confirms layoffs with computer sales plunging worldwide

MORRISVILLE – Facing a continuing plunge in global PC sales, market leader Lenovo is cutting jobs.

A company spokesman confirmed to WRAL TechWire that layoffs are being made, noting that the company’s top executive and its chief financial officer warned about cost cuts in February.

Financial pressure increased on Lenovo again in the first quarter as PC shipments – Lenovo’s primary revenue source – plunged 30%, according to industry data. Its global market share of 22.4% remains more than one percentage point ahead of HP.

Word of the layoffs leaked Tuesday in a tip to WRAL News. A poster at TheLayoff.com wrote that job cuts kicked off last week.

Lenovo to make ‘workforce adjustments’ in move to cut costs, a top exec says

“People were told today that they are being laid off and their last day will be May 15th. Multiple departments affected,” the poster said.

The number of layoffs is not clear at this point but WRAL was told that 8% of the company’s workforce would be let go. Lenovo has more than 60,000 employees around the world.

“Like our CEO Yuanqing Yang said at our most recent quarterly earnings announcement, we are reducing operational expenses and making workforce adjustments where necessary and appropriate,” a Lenovo spokesperson told WRAL TechWire. “We continue to invest in the areas that accelerate the growth and the overall transformation of the company.”

For example, Lenovo lists 106 open jobs in the Triangle, according to the latest WRAL TechWire Jobs Report.

Lenovo also made some layoffs as 2022 came to a close. The company declined to disclose details but denied a 10% workforce cut was being made.

Lenovo’s recovery triple play: Reignite PC growth, boost other revenues, step up tech recruiting

CFO Wong Wai Ming in said Lenovo would cut costs by $850 million in a conference call on Feb. 17 to discuss earnings for the fourth quarter of 2022.

“We will do this by investing in high-margin growth engines and taking proactive steps to reduce run rate operational expenses by approximately $850 million. This includes overall reduction in operational spending, as well as workforce adjustments, where necessary and appropriate,” Ming said, according to a transcript of the call published by business news web site Seeking Alpha.

In China, where Lenovo bases most of its operations as well as one of its two global headquarters (the other is in the Triangle), Yang announced a triple play of sorts in an effort to boost the company’s performance.

“While the industry faces significant macroeconomic pressures, Lenovo said it sees long-term opportunities ahead as the global trends of digitalization and intelligent transformation continue accelerating and IT spending is expected to recover to a moderate growth rate in the mid-to long-term,” he said, according to a report in China Daily.

Yang also continues to champion the hiring of talent to drive future product and technology development.

The company has added 8,800 R&D related jobs, China Daily noted.