Lenovo today said it plans to reduce its headcount by as many as 3,200, or about 10%, as it looks to reduce expenses.
The company reported earnings and said sales across its various business units dropped by 9% during the quarter. Lenovo’s Motorola unit saw a significant drop in shipments, which plunged 31% to 5.9 million phones during the quarter. The company blamed the poor performance on competition in emerging markets.
Even though Motorola’s sales sank, Lenovo CEO Yang Yuanqing expressed confidence in the division “I still believe mobile is a new business we must win. I still believe this acquisition was the right decision. Except Apple and Samsung, there is no third strong player. I believe that will be Lenovo.”
Motorola recently released the Moto G in the U.S., and plans to release the Moto X next month. Lenovo acquired Motorola from Google last year for about $2.9 billion.
