Lenovo to post loss, slash workforce

Lenovo Group said on Thursday that it would post a loss for its just-ended fiscal third quarter, and cut 11% of its workforce, the Wall Street Journal reported. The company said in a statement that it hopes to save US$300 million by March 2010 with a restructuring that will include the laying off of 2,500 employees worldwide this quarter. Executive compensation will also be cut by 30-50% this year. Lenovo’s China and Asia-Pacific operations will be consolidated and led by current Greater China head Chen Shaopeng. The company said the restructuring will cost about US$150 million, most of which will be taken this quarter. Analysts were doubtful that the restructuring would boost Lenovo’s competitiveness, given a global slowdown in consumer spending, the paper said.