HONG KONG Jan 2 China's Lenovo Group (0992.HK),
the world's No.4 personal computer maker, plans to lay off 200
employees at its headquarters in Beijing as it fights tough
economic conditions, an influential Chinese magazine said.
Of those redundancies, only about 10 would be senior
executives, Chinese-language Caijing magazine reported on its
online edition, quoting unnamed company insiders.
Lenovo had also suspended hiring and planned to sack
contractors at its factories, Caijing said.
Lenovo, which acquired IBM's (IBM.N) PC arm in 2005 for $1.25
billion, making it once a model for ambitious Chinese companies
expanding abroad, is expected to announce a major restructuring
plan on Jan. 8 including changes of its top management, Caijing
reported, quoting unidentified sources.
Lenovo's head of Japan market had resigned, due partly to
slow business growth in Japan, Caijing said, adding Japan and
India were Lenovo's two focuses in the Asia-Pacific region.
Friday was a public holiday in China and company officials
were not available for comment.
Last week, China Business News, an influential
Chinese-language business daily, said Lenovo might merge its
Greater China and Russia operations with its Asia-Pacific
David Miller, president for the Asia Pacific region, is
expected to resign and Chen Shaopeng, now president of the
Greater China region, would head the merged operations, China
Business News said.
Lenovo posted a 78 percent plunge in net profit to $23.44
million for the quarter ended in September, its worst performance
since its acquisition of IBM's PC business in 2005.