Chinese PC giant to cut workforce
One of the world's largest computer manufacturers, Chinese-based Lenovo, says it is to cut about 2,500 jobs around the world.
Lenovo blamed the cuts, which amount to nearly 11% of its total workforce, on the global economic downturn and a fall in demand for PCs.
It said the cuts were part of efforts to save $300m (£200m) in the coming financial year.
They were, it argued, essential if the company was to remain competitive.
"As hard as this news is for all of our Lenovo employees, we believe the steps we are taking today are necessary for Lenovo to compete in today's economy," said chief executive William J Amelio.
The company also said it expected to see losses in the final quarter of the financial year.
The statement said Lenovo had been hit by "the unprecedented global economic challenges facing the world, resulting in a reducing demand for personal computers and related products".
It also said that a reduction in demand from China, historically a major Lenovo market, had affected the company's fortunes.
Lenovo's net profits dropped 78% in the three months until the end of September.
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