World’s top PC maker Lenovo warns of job cuts after 24 per cent fall in revenue in fourth quarter
- Lenovo saw a steeper-than-expected revenue decline to US$15.3 billion last quarter, as rivals HP and Dell also grappled with slowing PC sales
- China’s pledge to spur consumer spending could soon boost electronics sales after dropping stringent Covid restrictions late last year
Net income fell for the first time since 2020, after revenue dropped a bigger-than-expected 24 per cent to US$15.3 billion in the final quarter of last year, according to a company statement. Analysts had expected sales of US$16.4 billion on average.
“We think the smart devices market is in its worst period,” Lenovo chief executive officer Yang Yuanqing said on an earnings call Friday. The company will need to make adjustments in its workforce to cut expenses in some operations, while hiring in high-growth areas such as services, he said.
Yang didn’t provide details on how large the job cuts might be, but he said headcount would be “just a very small portion” of the overall operational cost reduction.
The PC market might stabilise sooner than expected this year, and the company will in the meantime raise efficiency and invest in innovation, Lenovo said. Such cost cuts helped Lenovo’s quarterly net income fall a smaller-than-expected 32 per cent to US$437 million.
