Lenovo rumored readying layoffs

Amid current pessimism over the global economy, more reports of layoffs have surfaced online.

PC manufacturer Lenovo is reportedly laying off 200 staff in its Beijing-based headquarters, of which 10 or so are senior management, China Tech News reported Monday.

The report quoted an inside source as saying official cuts are still going through government channels for approval, but added Lenovo "may conduct large-scale adjustments in the Asia-Pacific region" as well.

A Lenovo representative dismissed the reports as rumors, telling ZDNet Asia the company could not provide additional information as it does not comment on speculation.

Software giant Microsoft has also been in the midst of layoff rumors. A CNBC report appeared Monday, saying the company would embark on a "significant" initiative "which might begin as early as this month to offset a global slowdown in sales."

Over the last week, similar reports have appeared, saying the company would undertake a massive global layoff that would take out 17 percent of its workforce. Adding to speculation was a statement released the prior week by Oppenheimer & Co. analyst Brad Reback, saying the company's profitability would be improved by a 10 percent reduction of its full-time global workforce.

Microsoft also declined to comment, noting in an e-mail reply to ZDNet Asia that it does not comment on "speculations or rumors".

An increasing number of multinational corporations in recent months have announced plans to reduce their headcount. Japanese electronics giant Sony announced in December it would lay off 8,000 full-time workers and another 8,000 part-time and contract-based workers globally. It employs a staff of 160,000 overall.

Dell, which had in 2007 set the goal of lowering headcount globally by 8,900, completed the exercise by its third quarter last year.

According to a December report, IBM plans to cut 2,600 jobs across its Asia-Pacific operations in a companywide "reorganization," with Japan hit hardest at 1,000 jobs set to be axed.

Eileen Yu reported for ZDNet Asia.

[websterphreaky]

Considering that the Chinese Communist Party is the MAJORITY and CONTROLLING owner (proof is on the internet if you bother to research) of Lenovo (every Lenovo you buy, helps ARM our ENEMY), anyone "laid-off" will be immediately drafted into the Red Army fixing missile targeting computers aimed at Japan, Taiwan and US .... as in us!

[paulej]

Now, don't get carried away. Do you think every country is our enemy? If not, why do you target China? What have they done to you lately? I have not seen China be at all aggressive toward the US, though there have always been tough talk from both sides over issues like Taiwan. Nobody really wants trouble between the US and China. China depends heavily on the US economy and the US depends heavily on Chinese manufacturing. Now, who would go screw that up? Putting the financial issues aside, the old communist government is not what it was decades ago. China is focused on improving the quality of life for its people, not attacking members of the G8.

[gggg sssss]

Glad to hear it. Hope the whole fr*ckn company collapses. Probably too much lead in the keyboards anyway. Secret plot to kill Americans.

[paulej]

I do not know what kind of financial position Lenovo is in, but Microsoft appears to be financally strong. Let's say that there is a rought quarter or two. So? It is not as though Microsoft does not have the cash to weather the storm. Large companies should take it upon themselves to do their part by keeping people employed, not throwing them on the street-- especially in times like these where finding a job is going to be next to impossible.