China's Lenovo Group announced that they will cut about 3,200 non-manufacturing employees worldwide.

Lenovo announced this decision in its financial report for the first quarter of the 2015/16 financial year. The company said facing the dramatic decline of PC sales, Lenovo Group must continue to improve effectiveness and cut expenses. They will reduce about 3,200 non-manufacturing employees around the world, accounting for 10% of its total non-manufacturing employees and about 5% of its total employees. The company reportedly has 60,000 employees worldwide.

With the employee layoffs, Lenovo Group is expected to save about USD650 million during the second half of 2015/16 financial year.

According to Lenovo's financial report for the first quarter of 2015/16 financial year, the company's operating revenue reached USD10.7 billion, which was about CNY68.3 billion, a year-on-year increase of 3%; and its net profit attributable to shareholders was USD105 million, which was about CNY670 million, a year-on-year decrease of 51%. During the reporting period, Lenovo's PC sales were 13.5 million units, a year-on-year decrease of 7.1%; meanwhile, its tablet sales were 2.5 million units, a year-on-year increase of 3.8%.

In addition, Motorola contributed 5.9 million units smartphone sales to Lenovo, a year-on-year decrease of 31%.


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