Asian experts claim that computer business Lenovo could be laying off 1,000 employees around the world.  The Chinese computer business has reportedly made a plan to get rid of some positions in the United States and China.  The story was released on Tuesday by Reuters and in the South China Morning Post.  Though no sources have been named in the announcement and company representatives have refused comment, sources say some employees would be reassigned while others would lose their jobs entirely.  

U.S. cuts by the major computer business would most likely affect the operations in Research Triangle Park in the U.S., where 75 percent of the U.S. employees work.  Already 330 have been laid off from this location by the computer business.  

Computer business Lenovo has been working hard to improve IBM’s PC business since purchasing the company for $1.25 billion two years ago.   The reports of lay-offs suggest that the company is not doing as well as expected with cutting costs and improving the PC revenue loss.  

While the different reports did agree on the number of employees that would lose jobs, they were not congruent in terms of where these lay-offs would take place.  A Hong Kong-based newspaper stated 400 positions would be lost by the computer business in China, whereas Reuters noted losses mostly in the U.S.  The computer business employs 24,500 people:  19,000 in China; 2,000 in the U.S.; 1,700 in Europe and the rest in other areas throughout the world.  

The lay-offs potentially mean that computer business Lenovo could save $150 million annually by spending $50 million to $75 million for severance and other benefits to those losing their jobs.  Spokespeople for the computer business have not confirmed the reports, nor have they denied them.  

Other analysts are stating that they do not necessarily think this latest restructuring of the computer business will take place, as they see Lenovo as doing well at recouping losses and moving forward.  Profits have risen 23 percent to $57.7 million recently and its U.S. presence has increased thanks to targeted marketing.

For more information on this developing story about computer business Lenovo, visit the attached link.  

Blogged By:  Joshua Feinberg