Lenovo to reduce 11 percent of its total workforce and executive compensation by 30 to 50 percent
Lenovo today announced a resource redeployment plan that will help the company increase its efficiencies and become more competitive in the face of the continuing global economic downturn. Lenovo expects to reduce the number of its employees worldwide by 2,500 during 1Q 2009, approximately 11 percent of its total workforce. This includes management and executive positions. The company is also reducing expenses in support and staff functions, such as finance, human resources, and marketing.
Lenovo also plans to reduce executive compensation by 30 to 50 percent, including merit pay and long-term incentives, as well as any performance payments for the coming year. These actions in total will help take advantage of Lenovo’s strengths as a global organization to better align its resources with shifting customer demands in the current marketplace.