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Lenovo sees quarterly loss, to trim staff

Wed Jan 7, 2009 7:02pm EST

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HONG KONG, Jan 8 (Reuters) - Lenovo Group (0992.HK), the world's no. 4 personal computer vendor, said on Thursday it was likely to incur a material loss for the three months ended in December 2008 and would cut staff by about 11 percent to reduce costs.

The potential loss was due to unprecedented global economic challenges reducing demand for personal computers, the company said in a filing to Hong Kong bourse.

Lenovo also announced a plan to cut 2,500 employees worldwide, or 11 percent of its total workforce, as part of an effort to realise annual savings of $300 million for the year ending in March 2010.

The company said it would incur a pre-tax restructuring charge of about $150 million for financial year 2008/09, which would be largely reflected in the fourth quarter of the year ending in March 2009.

For statement please see here

Trading in Lenovo shares, which was suspended on Wednesday, will resume on Thursday. (US$1=HK$7.8)



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