Lenovo confirms job cuts are coming

Lenovo has confirmed reports that it is to lay off over 1,000 staff - around two percent of its global workforce - as a result of dipping profits over the last three years.

Chinese technology giant Lenovo is no stranger to flashing the cash: Just last year the company was looking to invest in rival Fujitsu's PC business, while in the past it has acquired Motorola Mobility from Google and, more famously, acquired the rights to IBM's laptop and desktop PC brands. The days of record growth, though, are over: Back in 2015 the company reported an 80 percent decline in revenue and announced that it would be laying off 3,200 staff. Two years on and things aren't exactly improving: Its sales have continued to slide while its expenses have increased, and the company recently dropped from its previous market leading position for units shipped as HP's consumer arm took pole position.

The layoffs, then, continue: Lenovo has confirmed to The Register that it will be making more than 1,000 employees, around two percent of its 52,000-strong global workforce, redundant, with the majority of losses concentrated in the US and China. 'While we are making good progress by executing our three-wave strategy and strongly believe that we are on the right path to profitable growth, we are taking this step now to ensure that we are as competitive and as cost-efficient as we can be,' an unnamed spokesperson told the site, 'particularly with our growth continuing to build momentum in the market place.'

Lenovo's latest financial filings showed a six percent increase in operating expenses driving a pre-tax loss of around £52 million.