MORRSIVILLE, N.C. (WNCN) – Lenovo, a computer company which has a facility in Morrisville, announced Thursday that it would be laying off 3,200 employees worldwide – and 230 in the Triangle.
“Lenovo saw severe challenges in its main markets. It faced significant declines in the global PC and tablet markets, as well as slowing growth and increasing competition – especially in China – in smartphones,” a news release said Thursday.
The layoffs will include 10 percent of non-manufacturing jobs and 5 percent of the company’s entire global work-force. Lenovo hopes this move will reduce expenses by about $650 million in the second half of the year and about $1.35 billion in an annual basis, the company said.
Many who follow the computer industry said Lenovo needs to catch up quickly in a fast-changing sector.
“A lot of companies, Lenovo included, are now chasing Apple,” said Craig Petronella, a computer consultant.
Petronella said, “They need to make a radical change in moving into the mobile world.”
Petronella noted that the company that makes Blackberry phones was slow to adapt.
“Blackberry had an awesome solution and they were first to the market, but they missed the ball and now they’re fighting to get market share back to survive,” Petronella said.
Petronella said there always will be a need for laptops and mainframes Lenovo makes, but the company needs to be more efficient.
“They need to make an adjustment and alignment change to adapt to current market conditions,” he said.
Read more here: https://wncn.com/2015/08/13/lenovo-cutting-costs-by-cutting-3200-jobs/
