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Lenovo reorganizes China operations hoping to stem losses

Yang Yuanqing

May, 16 2017, 9:59 PM

Lenovo, the global PC and tech giant established in China, is reorganizing its home-country operations in an attempt to recover from recent losses, says its top executive.

“We need to clarify our China strategy,” chair and CEO Yang Yuanqing wrote in an email to Lenovo employees.

He says the changes are designed to “develop products more suited to the Chinese market," according to the email that was obtained by The Financial Times.

Yang went public with the reorganization in a blog post at a Chinese social media site where he has been an active contributor.

"China has the fastest-changing smart devices market. In order to take advantage of the opportunities in China, we take the step to restructure our business here," he wrote.

The change means Lenovo's China business will include a consumer-focused PC and smart devices group and a data center group.

"China has the fastest-changing smart devices market. In order to take advantage of the opportunities in China, we take the step to restructure our business here," he wrote.

The reorganization includes the return of a veteran Lenovo executive to the company.

Liu Jun returns after a three-year absence to lead Lenovo's revitalized consumer effort in China. He had helped lead Lenovo's acquisition of Google Motorola Mobility in 2014 but then left the firm.

​“The PC industry is changing . . . and China has the fastest-changing smart devices market,” Yang said in the blog. “China is our incubator for new products. In order to take advantage of the new opportunities brought by changes in our industry, we are restructuring.”

Yang is making changes after Lenovo reported a nearly 70 percent loss in profits in its most recent quarter.

Lenovo operates one of its two global executive headquarters in Morrisville and the other in Beijing. Most of Lenovo's operations are based in China.

The reorganization is the latest in a series of changes Lenovo has made since the Google Motorola deal and the purchase of IBM's low-end server business that same year.

Lenovo came to international prominence in 2005 when it bought IBM's Raleigh-based PC division.

Read more at:

https://www.ft.com/content/b69f2844-3a2e-11e7-821a-6027b8a20f23

And:

http://www.thestandard.com.hk/section-news.php?id=182950





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