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PC vendor purges jobs in drive to increase profits.

Lenovo in staff cull

Lenovo plans to reduce its global workforce by five per cent in what it calls a ‘resource reduction’ which will affect 1400 positions in the US and Asia.

750 jobs will be moved into markets closer to Lenovo supplier and manufacturing operations and 650 positions will be dissolved, reported Channel Register.

The firm will also be integrating its software testing operation into facilities in China. All the changes are expected to be implemented within one to twelve months.

Lenovo expects the restructuring to save it approximately $100 million in 2007/2008 fiscal year, the majority of which will be reinvested back into the company. However it also expects to be slapped with a $50-60 million pre-tax restructuring charge.

"We are confident that we are doing the right things to make Lenovo an even stronger, more competitive player in the global PC market," said CEO William Amelio.

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