Chinese PC maker Lenovo reports loss, CEO resigns
Chinese computer maker Lenovo Group announced a $96.7 million loss today for the latest quarter due to a fall in sales and said Chief Executive William J. Amelio resigned in a management reshuffle.Updated: Feb 06, 2009, 00:54 IST
Chinese computer maker Lenovo Group announced a $96.7 million loss on Thursday for the latest quarter due to a fall in sales and said Chief Executive William J. Amelio resigned in a management reshuffle.
Amelio will be succeeded by Lenovo Chairman Yang Yuanqing, the company said. It said Lenovo founder Liu Chuanzhi would return as chairman.
Lenovo, the world's fourth-largest PC manufacturer, said global shipments fell 5 percent in the October-December quarter. "The Group's results were impacted principally by slowdown of the Chinese PC market in which it has significant market share; and demand reduction in the worldwide commercial PC segment," the company said in a statement.
Lenovo, which bought IBM Corp.'s PC unit in 2005, warned in January that it expected a quarterly loss due to a restructuring that would involve cutting 11 percent of its workforce, or about 2,500 jobs. The restructuring was launched after profits in the previous quarter plunged.
Lenovo has been hit especially hard by the global economic slump because it relies heavily on corporate sales, where spending has fallen dramatically.