Lenovo has announced a "redeployment plan" which will see the company shed around 2,500 staff, or 11 per cent of its global workforce.
The group faced a "material" loss for the three months ended 31 December 2008, according to an announcement on the Hong Kong Stock Exchange, which the board put down to the financial crisis causing a reduced demand for personal computers and related products.
The reduction of employees was set to include management and executive positions, according to the company. Executive compensation for those remaining will also be reduced, with merit pay and long term incentives as well as any performance payment for the coming year taking a cut.
Another effect of the plan is that the China and Asia-Pacific organisations will be consolidated into a new business unit called Asia-Pacific and Russia.
The company hoped to see savings of US$300 million for the financial year ending 31 March 2010 as a result of its strategy.
