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
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.