After a poor quarter, Lenovo, the world’s largest PC maker and fifth largest smartphone firm, are laying off 3,200 staff in an effort to improve business.
Lenovo, which saw operating profit sink by more than 50 percent year-on-year to reach $105 million, decided to make the cuts to reduce overall headcount by five percent.
The move is estimated to slice the company’s wage bill by $1.35 billion per year.
“Last quarter, we faced perhaps the toughest market environment in recent years,” said Lenovo CEO and Chairman Yuanqing Yang in a statement. “To build long term, sustainable growth, we must take proactive and decisive actions in every part of the businesses.”
In addition to the major layoffs, Lenovo will reportedly write off $300 million in unsold smartphones, and spend $600 million to restructure its smartphone businesses.
This will be done so that Motorola and Lenovo are more strategically aligned.