Lenovo Warns Of Loss; Cuts Jobs, Restructures

Lenovo Warns Of Loss; Cuts Jobs, Restructures

Lenovo Group, the world's fourth-biggest PC maker, forecast a quarterly loss as China's slowing economy hit sales, and said it will axe 2,500 jobs as part of a restructuring to cope with falling demand for computers.

Shares in the company, which bought IBM's PC support business for $1.25 billion in 2005 to put the Chinese brand on the global stage, slumped by more than a quarter, their biggest fall in 11 years.



"Lousy quarterly earnings were widely expected, especially from its major markets overseas, but a faster-than-expected slowdown in the Chinese economy worries investors," said Conita Hung, head of equity research at Delta Asia Financial.

Bigger rival Dell announced plans on Thursday to cut around 1,900 of 3,000 jobs at its manufacturing plant in Ireland and move many of them to Poland as part of a $3 billion cost-cutting plan announced late last year.