Lenovo Announces Restructuring Plan, Resumption of Trading
Lenovo Press Release, 1/08/09
Chinese PC and consumer electronics manufacturer Lenovo Group (0992.HK) has announced its corporate restructuring plan. The plan includes the reduction of employees (including management and executive positions) and expenses in support and staff functions; reduction of executive compensation including merit pay and long-term incentives, as well as any performance payment for the coming year; consolidation of China and Asia Pacific organizations into a new business unit – Asia Pacific and Russia (APR); and the relocation of its call center operations from Toronto, Canada to Morrisville, North Carolina.
A total of 2,500 workers worldwide will be laid-off, representing approximately 11% of its global workforce.
The restructuring aims to save a total of approximately USD 300 mln for the financial year ending March 31, 2010.
Lenovo has also applied for its shares to resume trading, after it asked for them to be suspended pending an important announcement.
Editor's Note: Chinese media reports state that the layoffs will currently not occur in the China region.
Keywords: 0992.HK computer corporate restructuring hardware Lenovo notebook consumer electronics
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