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Lenovo announces major executive reshuffle

By Wang Xing (chinadaily.com.cn)
Updated: 2009-02-05 14:43

Chinese computer maker Lenovo Thursday announced a drastic executive reshuffle in the wake of a 5 percent decline in fourth quarter shipment because of sluggish corporate demand in the US, and a slowdown in the China market.

Liu Chuanzhi

Lenovo announced that Yang Yuanqing, the company's chairman, will step down to take up a new position as the company's president and chief executive, replacing Bill Amelio, whose contract has expired. Liu Chuanzhi, co-founder and president of the Lenovo's parent Legend Holdings, has been named the company's chairman.

Lenovo said its sales revenue fell to $3.59 billion in the third quarter of 2008 from $3.7 billion in same period of 2007.

Sales in the Greater China region in 2008 third quarter amounted to $1.6 billion, or 45 percent of the total, a decrease of one percent over the same period of 2007.

Yang Yuanqing

The latest reshuffle was Lenovo's second announcement within 30 days as the company is taking urgent measures to minimize the impact of the global economic slowdown. Last month, the company said it will lay off 2,500, or 11 percent, of its workers worldwide in the first quarter of 2009, and sharply cut executives' pay to save cost.

Lenovo's revenue in America in the latest quarter declined by six percent from year earlier period to $904 million because of a sluggish demand by corporate customers. Its revenue in Europe, Middle East and Africa combined decrease three percent to $735 million. In Asia, excluding Greater China region, Lenovo's revenue plunged 23 percent to $343 million.