Lenovo has reported a rather gloomy fiscal report this year, regarding its PC and smartphone businesses. With the company struggling to keep up its numbers in the market it has decided to lay off about 10% of the company’s employees from its non-manufacturing sector.
Lenovo’s reported revenue is $10.7 billion, which is still lower than the $11.29 billion forecast. It has also been reported that Lenovo’s net income is 5% lower as compared to last year. This situation has led Lenovo to lay off 3,200 people and a total of 5% of Lenovo’s 60,000 staff.
The justification of this move, is to keep the company afloat and running. However, the interesting bit is, that Lenovo is also planning to use the profits earned to restructure the mobile business. It has plans to rethink its handsets and have only a few signature models.
Hence, Lenovo has asked Motorola to take charge of its mobile division. Reports also suggest that Lenovo’s CEO has written a letter to the employees urging them to better the company’s mobile business group and thinks that, with Motorola in charge of the mobile division and Lenovo in charge of the PC division, both companies should be able to bring Lenovo to the forefront, once again.
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