On Thursday, the Chinese computer giant Lenovo said that it would cut more than 3,000 jobs as the net profit fell by more than 50 percent for its first quarter.
The net profit fell 51 percent to $105 million for the first three months to June 30 as compared to $ 214 million for the same period last year.
The first quarter’s pre-tax profit also plunged by 80 percent.
Lenovo said in a statement to the Hong Kong stock exchange that it would seek to slash costs by $1.35 billion annually and cut 3,200 staff from its non-manufacturing workforce — around five per cent of its worldwide headcount.
“In the face of financial results that did not meet expectations, Lenovo is undertaking broad, decisive actions — including better aligning its businesses and significantly reducing costs,” the firm said in a statement.