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Global shipments of PCs decreased by 29% year over year in the first quarter.
April 21, 2023
Lenovo job cuts are impacting an undisclosed number of workers amid continuing declines in computer shipments.
Lenovo’s Yang Yuanqing
In its third-quarter earnings announcement, CEO Yuanqing Yang addressed the Lenovo job cuts. He said the company is reducing operational expenses and making workforce adjustments where necessary and appropriate.
“Last quarter, the entire PC and the mobile market experienced a severe downturn … inevitably, Lenovo was largely impacted, too,” he said. “But with our diversified growth engines of infrastructure, solutions and services, over 40% of our revenue now is driven by non-PC businesses. This also helped us to maintain solid profitability.”
Lenovo saw a significant decline in its device business during the third quarter, Yang said.
Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.
“Our group revenue was down by 24% year-on-year or 18% in constant currency,” he said. “Last quarter, we took proactive actions to reduce expenses and improve efficiency to ensure our cost competitiveness, especially, in areas where we see a softer market outlook. Our cash balance is still strong. “
Chatter about the Lenovo job cuts has begun on TheLayoff.com.
“Cut the travel budget and get rid of the middle-management bloat you have at this company and this problem gets a whole lot smaller,” said one worker.
“Not good at all, I see a recession coming,” another worker said.
And another worker said Lenovo is spending money and “flying people all around the world for (sales kickoff) to celebrate FY23 achievements acting like everything is rosy.”
“The worthless mid-level executives still there and the useless highly paid vertical execs, too — and are gonna continue to turn a blind eye to the individual sales contributors who are buried beneath the workloads of their departed colleagues,” the worker said. “Toxic workplace driven primarily by favoritism, brown-nosers and dysfunctional leaders- if you were cut this round, so sorry. Give it a few weeks to adjust, and you’ll be singing the Hallelujah Chorus!”
According to IDC, global shipments of PCs decreased by 29% year over year in the first quarter. Double-digit annual declines have now occurred for four straight quarters.
Read more about:VARs/SIs
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