Lenovo's restructuring plan will save $250 million USD

There is some major shuffling going on at Lenovo these days. Citing increased competition in the global PC market, Lenovo is cutting its workforce by 1,000. The cuts will come from full-time positions in the Americas, Asia and EMEA and represents a 5% reduction from Lenovo's global workforce of 21,400.

The company is also moving its corporate headquarters from Purchase, NY to Raleigh, NC. Raleigh is already home to Lenovo's ThinkPad group, so it makes financial and logistical sense to have its headquarters located there as well.

"Our plan integrates Lenovo’s global sales organization and back-office support into one highly responsive customer-service unit, and ensures that, where it makes sense, teams are centralized for better performance and efficiency," said William J. Amelio, president and chief executive officer of Lenovo. "These steps position Lenovo as a more effective global competitor while supporting our commitment to lead in innovation and customer satisfaction," Mr. Amelio said.

Lenovo expects for its restructuring plan to be completed within the next 6 months to a year. In the end, the company expects to save up to $250 million USD.

The company is also looking to new product lines to increase its visibility in key markets including North America. Lenovo's 3000 series desktops and notebooks were launched in February. The desktops start at $350 while the new entry-level notebooks start at $600. According to Amelio, these products are key to Lenovo's profit growth and will help it better compete in a market dominated by Dell and Hewlett-Packard.

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