Lenovo is replacing its chief executive William Amelio with current chairman Yang Yuanqing, after the firm suffered a $96.7 million loss in Q3.
Sales for the last three months of 2008 fell 20 per cent to $3.59 billion, and the group’s gross profit dropped 48 per cent year-on-year.
Yuanqing returns as CEO immediately, while Lenovo’s founder once again fills the position of chairman. Meanwhile, current senior vice president Rory Read moves to the newly created position of president and COO.
The shake up is essentially a return to the old structure that ran Lenovo before it bought the PC arm of US firm IBM in 2005.
The firm cited the fact Amelio had 'reached the end of his three year contract' as the reason for his departure.
“Lenovo has grown successfully on the international stage, but at this important time, we want to pay particular attention to our China business as it represents the foundation of our global business and growth strategy,” said Chuanzhi.
“We have the particular benefit of naming Yang Yuanqing to the CEO role since he built our China business. His in-depth knowledge of that market and ability to execute there are unmatched in the industry. We believe he is the right person to lead Lenovo for the next several years. I’m pleased to return to my role as chairman and look forward to working in the best interests of our shareholders with Yuanqing and Rory.”