Lenovo DCG experiencing huge layoffs worldwide. Some development teams cut in half or worse. Some delivery teams experienced a 20% reduction in staff. Some of the highest skilled support staff were let go. Sales mostly not effected.
Contractors were given 2 weeks to pack up and leave. Regulars got a month.
Some of the jobs went offshore.
Buy US and help make America Great again. China can not be trusted since they got caught putting spyware on computers. They steal technology from us , never buy Chinese junk !
People overseas see things different than in the U.S. Quality and price are a major concern for customers and can not be ignored. Lenovo is losing ground to both Dell and HP and being an Asian company there are security issues that can not be ignored. The U.S government will not touch any Lenovo servers at all. They believe the code is tainted.
When Lenovo was caught installing spyware, it was a big deal. It lost its reputation with customers and no matter what they try, it won't bring them back. People are now afraid of servers. While there are some that are low margin, there are others that are in hyper-converged solutions that do cost a lot of money and the profits are higher. Lenovo's reputation will always hurt the brand.
People were led to believe that Asia had all the skills needed, but now they are finding out they do not. The U.S worker does not cut corners or ships a product that is inferior in quality.
The posts here in broken English must be from Lenovo Chinese office. They keep mentioning growth, but Lenovo is not growing. Lenovo has a huge amount of debt and could well be bankrupt in two years
Actually,BeiJing and ShangHai have enough top talents for X86 server technology for low growth of x86 server market so far. There will not have another surprised X86 server shipment growth until new processor silicon process by 7nm. Intel did the major roadmap for X86 HW shipment.
The cuts are coming at the worst time. Management in the DCG group seem inept at best. No strategy and overwhelming unrealistic expectations. I'm not sure how they believe that the path they are on will create growth.
Is only DCG affected or other departments as well?
"There will be so many talent people from top campus in China"
That is the philosophy from the start. Move to cheap labor in China.
Best wishes with that strategy.... Stock is 40% of what it was 3 years ago.
Another reason to go with Dell and HP.
With all the layoffs, moral is at an all time low.
Was at a meeting at Lenovo and new employee in China was begging for access to "The Internet"
around the Totalitarian States Great Firewall.
I can't see companies outside of China using Lenovo due to the huge Security Risks.
I worked for the DCG team at Lenovo for nearly two years and saw what was once a great business & team start to get dismantled. The problem is not the product Lenovo is selling. Rather, it's their strategy. Moving away from higher skilled server teams to in charging the lower skilled PC folks to lead is a huge mistake and one they continue with. They will not win the datacenter business with this strategy. If I was a customer and looking at the North American offering and capabilities of DELL, HP & Lenovo... its a no brainer DELL or HP. This is why I left. Also, the fact that customers are moving to Cloud and the hardware business as a whole is shrinking.
The quality will be not important at the moment. however the cost and shipment quantity should be higher priority.The annual revenue up will be the strategy. It's not so difficult to renew higher skilled employee. There will be so many talent people from top campus in China. The cost efficiency will be more concerned.
It is unfortunate that Lenovo is a sinking ship. I have many friends at Lenovo. The City of Raleigh, in Lenovo's headquarters frontyard, just dropped Lenovo for Dell. One of the reasons was security concerns.
Layoffs happening this month are across the board, well in excess of 20%. Lenovo does have some technology advantages but the company is ham stringed by Finance. They are incapable of competing on price with any other competitors in the market. This knee jerk reaction to cut sales, engineering, support, etc. is just a temporary attempt to show a profit on their books. The industry has already recognized that this is not a viable strategy for the future. Too many high quality employees were chopped. On a good note, the Executives seem to be doing very well for themselves.
Lenovo believed that getting into the Enterprise market would open the door to sell more systems. They were wrong the market demanded virtualization and not actual physical hardware. They do have some solutions, but they are behind Microsoft, Amazon, and other companies. The expectations for revenue were too high for a dying market. Now they have to make cuts and more cuts. The teams are already overworked.