China’s Lenovo Group, the world’s biggest personal computer (PC) maker, is laying off about 3,200 employees after profits more than halved in the second quarter of 2015, it announced on Thursday.

Lenovo
Lenovo

The job cut, which will be conducted in the company’s non-manufacturing work force, accounts for about 10 percent of the non-manufacturing headcount and 5 percent of its total employees globally, according to a company statement filed to the Hong Kong Stock Exchange, where it is listed.

Lenovo saw profits attributable to its equity holders slump 51 percent year on year to 105 million U.S. dollars for the three months through June, or the first quarter of the company’s fiscal year 2015/2016.

It vowed to reduce expenses by about 650 million U.S. dollars in the second half of this fiscal year by realigning its businesses, accelerating expansion in the PC market and improving efficiency.

Revenues rose 3 percent year on year to 10.7 billion U.S. dollars in the second quarter, with PC business contributing 7.3 billion U.S. dollars, down 13 percent year on year.

The company said it sold 13.5 million PCs worldwide, a decline of 7 percent year on year, as the industry was affected by factors such as currency fluctuation and weaker demand ahead of the release of Windows 10, the latest Windows operating system launched in late July.

Revenues from mobile business jumped 33 percent year on year to 2.1 billion U.S. dollars, helped by the company’s purchase of Motorola’s mobile business in October last year.

Smartphone sales grew 2 percent year on year to 16.2 million in the second quarter, while tablet shipments rose 4 percent year on year to 2.5 million, according to Lenovo’s statement. Enditem

Source: Xinhua

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