The Downsized Diaries

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Archive for the ‘Layoffs in the News’ Category

Lenovo top management shares in ‘resource deployment’ pain ::

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Posted: Today at 7:57 a.m.

MORRISVILLE, N.C. — Lenovo’s “resource deployment plan” sounds just like “resource action” at IBM – restructuring and layoffs. However, there’s one thing Lenovo didn’t inherit something from Big Blue when it acquired IBM’s PC division for more than $1 billion back in 2005. The Chinese founders and U.S. investors who control the company are making sure management pays the price for lack of performance.

While 11 percent of Lenovo’s global work force – including a couple hundred among the 1,700 at the global headquarters campus in Morrisville – hit the street, they aren’t the only ones who will be feeling the pain. Lenovo said top managers’ compensation will be cut from 30-50 percent.

That slash in pay is a stunning rebuke for Chief Executive Officer William Amelio and the other top managers he hand-picked to lead Lenovo after he bolted Dell for the top spot at the world’s No. 4 PC-maker in December 2005.

via Lenovo top management shares in ‘resource deployment’ pain ::

Written by Krista Summitt

January 8, 2009 at 12:43 pm

Lenovo to slash 11% of work force; net of 100 jobs leaving RTP ::

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Morrisville, N.C. — Lenovo Group said Wednesday it will lay off 2,500 workers, or about 11 percent of its work force, as part of a plan aimed at helping the computer maker remain competitive amid the global economic downturn.

The company, which is the world’s fourth-largest PC maker, also warned that it expects to report a loss for its fiscal third quarter, which ended Dec. 31. Lenovo’s headquarters is in Morrisville. Most of its operations are in China.

The restructuring will mean a net loss of 100 jobs for the Triangle, according to company spokesperson Ray Gorman. Lenovo said it would close a call center in Toronto, Canada, and move those jobs to Morrisville.

However, some 250 jobs will be cut in the Triangle, Gorman said. The hires for the call center work will be made locally, he added.

The 250 cuts in the Triangle will be made in “all functions,” Gorman said. “It’s across the board.”

The layoffs are expected to be completed by the end of the first quarter, Gorman said.

Lenovo now employs around 1,700 people locally. Recently, 50 positions were eliminated as part of cross-company, cost-cutting moves. Hundreds of former IBM employees have left or been laid off since Lenovo acquired IBM’s PC division in 2005 for more than $1 billion. IBM’s PC group was based primarily in the Triangle.

via Lenovo to slash 11% of work force; net of 100 jobs leaving RTP ::

Written by Krista Summitt

January 8, 2009 at 12:41 pm

Triangle unemployment rate increases – Business – News & Observer

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Triangle unemployment rate increases – Business – News & Observer.

The Triangle is home to a large concentration of traditionally stable industries: health care, education and government. But job cuts now are hurting workers in those sectors.

Wachovia economist Mark Vitner expects the state and local jobless rate to pass 9 percent before any type of recovery.

“This is a wicked recession,” Vitner said. “And it’s gotten whole lot worse.” or 919-829-4572

Written by Krista Summitt

January 6, 2009 at 2:44 pm