Lenovo has announced a reduction of around 3% of its US workforce, meaning more than 100 employees will be laid off. While the numbers do not seem large, it is a signal part of a wider trend of cuts in the global IT industry – just a few weeks earlier, around 9,000 people lost their jobs at Microsoft.
The Chinese computer manufacturer explains the decision as a ‘strategic reorganisation’ and to adapt its cost structure to changing market realities. The layoffs will include some of the teams in North America, mainly in North Carolina, where Lenovo’s headquarters for the region is located.
The reductions are part of a familiar pattern for the company. Lenovo made similar cuts in 2015, 2017, 2019 and 2022 – usually during periods of restructuring or slower growth.
This time, however, the background looks different. The company emphasises that it is in the process of investing in new areas, primarily artificial intelligence. In June, Lenovo unveiled new AI-based infrastructure solutions, and CEO Yuanqing Yang announced that “the coming decade will be the decade of AI” for the conglomerate. In line with this vision, the company is expected to produce more AI-enabled PCs and develop the smart infrastructure segment.
Lenovo reported 21% year-on-year revenue growth in the last quarter, suggesting that the cuts are not due to the crisis, but rather the need to redefine priorities. The company is seeking a balance between optimising costs and preparing the ground for growth in a new, more automated world.
