Lenovo plans no more layoffs: CEO

People walk past the Lenovo store, an official sponsor, inside the Olympic Green during the Beijing 2008 Olympic Games, August 20, 2008.

RIYADH (Reuters) - Lenovo (0992.HK), the world's fourth-biggest PC maker, is not planning new lay-offs after a restructuring this month that will axe 2,500 jobs, and expects consolidation in the sector, CEO William Amelio said on Sunday.

"We don't plan further lay-offs," Amelio told Reuters on the sidelines of an economic conference in the Saudi capital Riyadh.

"I'm confident that with what we've done right now we have been able to get ourselves efficient," he said.

Lenovo is exploring opportunities for acquisitions and expects the top five personal computer makers to have 85 percent of global sales after consolidation, up from a current 50 percent.

"We are looking at all opportunities that are out there," Amelio said. He declined to name any potential targets for an acquisition. "There is going to be a consolidation. It is going to happen."

Amelio declined to talk about his company's fourth-quarter earnings.

He said demand in the Chinese market could recover in the second half of this year.

"As some of the fiscal and stimulus packages kick in, we are hopeful that China toward the back half of this year starts to pick back up again into the next year," Amelio said, declining to give any figures.

Earlier this month, the company forecast a quarterly loss as China's slowing economy hit sales.

(Reporting by Souhail Karam, editing by Will Waterman)