As you are aware, the global economic recession has impacted Lenovo’s business. We continue to seek ways to reduce operating expenses and drive greater efficiencies by creating a leaner, more streamlined global operation.
Today we announced the elimination of nearly 450 positions in worldwide functions based in China. These actions will substantially reduce costs and eliminate overlap across our organization. Our objective is to refine and improve our business model, increase our speed and efficiency and more closely align our operations and business strategy. This will help ensure our long-term competitiveness.
We will act with compassion and respect toward employees who are leaving our company, and we offer our sincere gratitude for their contributions. Over the next few days, we will communicate with employees affected by this action and provide them with career guidance to help them through this transition.
The path to success is not an easy one amid these challenging conditions. We must ensure strength, efficiency and execution in our key core businesses, and our commitment to our global strategy remains unchanged. We must also find opportunities to expand and grow, especially in key emerging markets and in our consumer business.
We have an outstanding and talented team. It is your commitment to our success that will enable us to continue to grow our business and establish Lenovo as one of the world’s best and most well-respected companies.