China's Lenovo announces restructuring to focus on consumer

FILE PHOTO: A man uses his laptop next to Lenovo's logos during the Mobile World Congress in Barcelona, Spain February 25, 2016. REUTERS/Albert Gea

HONG KONG (Reuters) - Lenovo Group Ltd announced a plan to restructure its China business to cope with the changing personal computer (PC) industry.

Lenovo will be reorganized into two divisions, a consumer-focused division of PC and smart devices, and a data center group, Chairman Yang Yuanqing said in a blog post on Tuesday.

“China has the fastest-changing smart devices market. In order to take advantage of the opportunities in China, we take the step to restructure our business here,” he said.

Liu Jun, who previously worked for Lenovo’s mobile business group, will return to the company as president of Lenovo China and lead the consumer division, Yang said in the microblog post.

Lenovo, the world’s biggest PC maker by shipments, posted a 67 percent slide in third-quarter net profit in February. Its PC division, which accounts for about 70 percent of revenue, saw revenue rise 2 percent after seven quarters of decline.

Reporting by Meg Shen, editing by David Evans