Dive Brief:

• Citing a need to accelerate transformation across the company, Lenovo has announced a reduction in workforce of about 3,200 people in its worldwide operations, according to an article at Human Resources Online.
• Yuanqing Yang, Lenovo's chairman and CEO, sent an email to all employees that this action would include 10% of non-manufacturing headcount and about 5% of the total population of around 60,000 people.
• While the core PC business remained strong, the two newer growth engines – mobile and enterprise – are still in the process of  integrating elements of the acquired businesses and building the business model, cost structure and competitive foundation. Lenovo wants to reduce expenses by about $650 million in the second half of this year and about $1.35 billion on an annual basis as well as become more efficient.

Dive Insight:

As for impact in the U.S., the Chicago Tribune reports that Motorola Mobility, owned by Lenovo, is taking the bulk of Lenovo's headcount hits as part of the overall job cutting.

Last week, the U.S. subsidiary began laying off about 500 employees, cutting 25% of its Chicago workforce just over a year after moving into a new headquarters in the Merchandise Mart in Chicago, the Tribune reports.

“We do not make these moves lightly," Yang said in the email to employees. "I know how hard our people work. But we must ensure our long-term success and ability to meet our goals and commitments. We will act with logic and respect, speed and precision, clarity and consistency as we make these changes.”