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Lenovo CEO resigns after Q3 loss

Microscope contributor

Lenovo has reinstalled a Chinese executive at the top of the business after reshuffling its management to try and claw back its fortunes after Q3 sales dropped and it lost market share.

Bill Amelio, who resigned as CEO has been replaced by Yang Yuanqing, who has been with the vendor since 1989. The founder of the company Liu Chuanzhi had also made the decision to return to the role of chairman.

Amelio had taken the reigns after the acquisition from IBM but has fallen on his sword after sales fell 20% year-on-year for the third quarter ended 31 December

The vendor reported its first loss for three years with a Q3 pre-tax loss of $90m is likely to be followed by another bad quarter because of restructuring charges that will be factored into the next trading period.

In a statement the newly installed CEO Yuanqing said that it had to make changes to ensure it was well positioned to protect the business.

"We have taken actions to ensure that in an uncertain economy, our business operates as efficiently and effectively as possible, and continues to grow in the future.  The recent restructuring actions we have taken are a direct result of our focus on improving our cost-competitiveness and operational efficiency," he said.

"In addition, we will also further differentiate our brand and product positioning, establish a corresponding end-to-end integrated organizational structure, and create product marketing mechanisms that can react to market changes more quickly," he added.

 

Related Topics: Desktop PCs, VIEW ALL TOPICS

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