Lenovo Cuts 3200 Jobs As Company Shares Slid Down To 51pct

BANGALORE: When any business runs at a loss, employees are the ones who suffer the most.

So happened with China based mobile manufacturer, Lenovo, forcing them to  lay off ten percentage of their employees as the company incurred a major financial loss , according to a report by Economic Times.

Shares have gone down up to 9pct as Motorola handset sales slid down heavily. The company claims that with a loss $300 million, their net profit has also gone down significantly. The job sack plan of the company is all set to cut down an approximate number of 3,200 non-manufacturing jobs at an one time expense of $600million.

Chief Executive Yang Yuanqing has considered this phase to be the toughest market situation the company has ever faced  However, he  still hoped  for a quick recovery from their current situation and said, "I still believe mobile is a new business we must win," in an interview with Reuters.

As per Lenovo records, this quarter the company has sold 5.9 million Motorola handsets which  marks a 31 percent decline in sales since they acquired Motorola from Google. The drop down of  Lenovo shares to 8.7 per cent made it the lowest since February 2014.Analyst Leping Huang said, “The market was worried about a slowdown at Motorola and the China market share decline, and then they reported the investors' worst fears,” as he shared his worthy views regarding the sudden share fall of the company,

Thomson Reuters SmartEstimates had predicted a 59 percent fall in net profit though the actual is 51 pct with a valuation of $105 million.

Chief Financial Officer Wong Waiming’s comment can be a sigh of relief for the company, who commented on the scene as "no significant implication to our cost of borrowing."

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