MORRISVILLE – Lenovo, the world’s top PC seller, has told contractors that their jobs are being terminated as of April 30 and is instituting other cost-cutting measures, according to employees and sources.
The tech conglomerate also is cutting funding for internships and freezing some salaries, sources say, as it attempts to deal with the economic fallout of the ongoing COVID-19 pandemic.
Cuts right now are reportedly occurring primarily in the Data Center Group, which is based in Research Triangle Park.
“Most contractors for the Lenovo DCG are being told their last day is April 30,” an engineer tells WRAL TechWire.
“[P]ersistent rumors of full time regulars may be being hit down the road.”
Lenovo would not comment on the specifics of any cuts.
“We are unable to discuss specifics regarding your HR [human resource]-related questions, but given the widespread industry uncertainty resulting from COVID-19, like every business today, we are actively managing our cost structure to ensure Lenovo’s long-term viability,” said
Lisa Marie L. Ferrell, head of public relations for Lenovo North America, in an email to WRAL TechWire.
Lenovo drives up marketshare in US, keeps No. 1 spot in global PC sales
Similar comments as shared with TechWire have shown up at TheLayoff.com.
“Confirmed contractor layoffs across multiple Lenovo groups in US and other ‘high cost’ geos,” one post reads.
“All DCG contractors must exit the business by 4/30,” adds another. “Who do you think is next?”
For people who keep their jobs, the news isn’t all good.
“Email from executives came out today stating that there will be no merit pay increases for this fiscal year (20/21) and promotion pay increases will be delayed to the next fiscal year (21/22),” a poster writes. “I fear that next step will be layoffs…”
Lenovo operates one of its two global headquarters in Morrisville (the other is in Beijing) and employs some 3,000 people in the Triangle according to the Triangle Book of Lists published by the Triangle Business Journal.
Lenovo, which employs more than 50,000 people worldwide, recently told TechWire that there was no hiring freeze in effect at that time.
The company said all its factories in China, where it maintains most of the firm’s operations, have reopened after being idled during the coronavirus outbreak.
An internship program between Lenovo and Wake Tech Community College also is being hit with interns being let do as of May 1, according to the employee and what has been reported at TheLayoff.
The DCG’s 2019 Q4 revenue of $1,41 billion decreased 2.6% from 2018, according to data tracking firm IDC. Lenovo last reported quartertly financials on Feb. 20 and said server shipments increased but revenue was flat.
“[S]eems DCG didn’t have a great quarter, didn’t meet some of its targets and Lenovo is getting rid of low hanging fruit to shore up financials before the coronavirus starts to impact more fully,” the engineer says.
Lenovo cut some 500 jobs in May of 2019.
