Lenovo boss quits after US$96m loss
05-02-2009
The American head of the mainland computer maker Lenovo has resigned after the company suffered a US$96-million loss in the latest quarter due to a fall in sales. The chief executive, William Amelio, has been replaced by Lenovo's chairman, Yang Yuanqing. The firm's founder, Liu Chuanzhi, is to return as chairman. Lenovo, the world's fourth-largest PC manufacturer, said global shipments fell five percent in the October-December quarter. "The Group's results were impacted principally by slowdown of the Chinese PC market in which it has significant market share; and demand reduction in the worldwide commercial PC segment," the company said in a statement. Lenovo, which bought IBM's PC unit in 2005, warned in January that it expected a quarterly loss due to a restructuring that would involve cutting 11 percent of its workforce, or about 2,500 jobs. The restructuring was launched after profits in the previous quarter plunged. Lenovo has been hit especially hard by the global economic slump because it relies heavily on corporate sales, where spending has fallen dramatically.
