Lenovo is implementing cost-cutting measures days after reporting that its profits and sales were being impacted by the COVID-19 coronavirus pandemic.
A Lenovo spokesperson confirmed the cost-cutting measures via email, although the company didn’t disclose any specifics.
"Like every business today, we are continually managing our cost structure to ensure long-term competitiveness, including undertaking targeted expense saving actions in certain areas," the spokesperson wrote.
The China-based data center and mobile device giant last week reported that its fourth fiscal quarter 2020 worldwide revenue fell 10 percent year-over-year to $10.6 billion, while net income fell 64 percent to $43 million.
The drop in fourth fiscal quarter year-over-year revenue included a 47 percent decline in Lenovo's Mobile Business Group (MBG), a 4 percent decline in its PC and Smart Devices (PCSD) business, and a 3 percent fall in its Data Center Group (DSG) business, the company reported.
Lenovo blamed much of the shortfall on the COVID-19 coronavirus pandemic, which disrupted production in its Wuhan, China-based facilities.
Among the cost-cutting measures Lenovo could employ are job cuts. However, the spokesperson declined to discuss whether Lenovo layoffs are a part of the measures.
Lenovo held a round of layoffs in May of 2019 that meant the departure of 500 employees.
Solution providers are not surprised to see cost-cutting measures impacting Lenovo, particularly given Lenovo's customer base which extends from small businesses to enterprises.
