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Lenovo plans job cuts as sales slow, profits fall

2015-08-13 08:57:00| Telecompaper Headlines

(Telecompaper) Lenovo saw its revenue growth slow to 3 percent in its fiscal first quarter June, to USD 10.7 billion. Net profit fell 51 percent year-on-year to USD 105 million. The company said it suffered from the slowdown in the PC and tablet market, growing competition in smartphones, especially in China, marcoeconomic and currency headwinds in key markets such as Brazil, and "rapidly shifting technology demand" at its enterprise business. To address the difficult market conditions, Lenovo announced a round of restructuring, focusing on better integrating its recent acquisitions and lowering costs. This will include the elimination of 3,200 jobs outside manufacturing, or around 5 percent of its total workforce. 

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