Thread regarding Lenovo layoffs

What's next for DCG? Open Discussion

To the folks that have successfully called the last two layoff cycles, what's next? Certainly the company isn't staying put with reduced headcount and increased quotas and expecting growth.

We are losing executives in North America and have teams that are fractions of what they were before. Unsure what the rest of the geo's look like, but I hope they're in better states. Ultimately, there's moves happening behind the curtain - and I want to know what they are!

Please feel free to use the below for open discussion on your thoughts and predictions. Let's try to keep things civil and reasonable. If you have facts, try to reinforce for whatever proof you can provide.

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Post ID: @OP+15nnWgXh

29 replies (most recent on top)

@hkoe+15nnWgXh

you are open to be corrected. if only lenovo executive would apply the same business logic to this poor poor perfoming unit as it did everywhere else.

IDG as PCSD is about to take big actions. because it is necessary.

Delusional DCG wants to open a factory in Eastern Europe .

back to basics, wipe the board and start again.

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Post ID: @jwgy+15nnWgXh

another quarter end disaster, another loss,

frantically shipping loss making products, why bother ? what business logic is that ?

DCG never gave up its American led IBM history.

MBG let go its Motorola history.

Let it go.

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Post ID: @jexn+15nnWgXh

@hkoe+15nnWgXh - closing non-PRC operations entirely and laying off all staff? How likely is that... my gut tells me unlikely. But I'm open to be corrected.

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Post ID: @hwzt+15nnWgXh

For non-Chinese DCG employees, no job. That is pretty much what it will be. Lenovo is like the 1%. The Execs and Management make 90% of the pay and they do nothing except act. They act like they work. They act like the care. They act like their your friend. They are all just snakes in the grass, especially Execs. They have their Golden Parachutes. If they get walked out, they are leaving with 7-8 figures, nothing they would have to worry about.

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Post ID: @hkoe+15nnWgXh

It’s still early in quarter. We can just lower price and customers will move from cloud and Dell/HP.

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Post ID: @eeag+15nnWgXh

DCG miles off the targets for this quarter again.

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Post ID: @dnck+15nnWgXh

DCG separate companies were created nearly 3 years ago. So what.

It couldn't get sold off.

There is no external partner or joint venture.

So finally. Finally. Lenovo will right size the headcount to match their value.

Meanwhile the gsc lady post utter c-ap on linked in.

Bin her. Save millions.

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Post ID: @diup+15nnWgXh

one way to figure out if your org is going to be gone, is look at your top figure's linkedin profile.. to see if it is updated, or the related top figure (like sales' vp) , yes, mostly DCG is a goner.. however, if still with them, wait and take the last paycheck from there and reimbursement if possible.. drag as long as possible to be in there.. .. get the last penny from them while looking outside.. job market is bad at RTP!.. also try to catch up with all the past reimbursements .. and take all the free training

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Post ID: @dasb+15nnWgXh

New entity has been created in PRC and new external investment for the new entity has been accepted. This has been already publicly discussed in DCG all hands, project Himalaya. Whoever is calling fake news doesnt know what is going on.

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Post ID: @dxum+15nnWgXh

There are laws in the US, EU and China. You can’t just ‘create a new entity’ without disclosing to investors or regulatory agencies. Fake news.

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Post ID: @cwuj+15nnWgXh

Dcg china and row are now two separate entities. Lenovo will keep china and sell of row.

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Post ID: @9ock+15nnWgXh

@9whw+15nnWgXh - do you genuinely believe Lenovo would drop the multi-billion dollar investment that is DCG?

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Post ID: @9evo+15nnWgXh

DCG eventually closes up shop or merges with another cheap and poor quality Chinese server company.

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Post ID: @9whw+15nnWgXh

The term "boondoggle" may also be used to refer to protracted government or corporate projects involving large numbers of people and usually heavy expenditure, where at some point, the key operators, having realized that the project will never work, are still reluctant to bring this to the attention of their superiors. Generally there is an aspect of "going through the motions"—for example, continuing research and development—as long as funds are available to keep paying the researchers' and executives' salaries.

The situation can be allowed to continue for what seems like unreasonably long periods, as senior management are often reluctant to admit that they allowed a failed project to go on for so long. In many cases, the actual device itself may eventually work, but not well enough to ever recoup its development costs

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Post ID: @2krv+15nnWgXh

it is that simple.

take DCG leadership out of USA , reduce the dependency of IBM/MICROSOFT/INTEL contracts and back scratching, Reduce the corporate structure in USA.

DCG would break even in 6 months.

let it go

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Post ID: @2fhe+15nnWgXh

So....move leadership out of US and DCG gets better? It’s that simple?

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Post ID: @2chg+15nnWgXh

DCG future -

what needs to be done. said it in other threads, but for whatever reason your not listening.

Pull the Corporate leadership away from USA.

Lenovo is succesful in every other geography, with European, Chinese, and Latin America leaders,
Getting Moto MBG to a break even figure was quite outstanding.
PCSD made its best ever financials in the last fiscal year.
PCSD in NA has a great leader, but he is up against racist politics, and disgusting rhetoric.

Simply let the regions do their own thing, integrate sales into country structure, integrate Supply chain into IDG.

Take out the dependance of DCG Corporate America structure on spending "other people money".

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Post ID: @2cgd+15nnWgXh

DCG is a go nowhere business. They can't find a suitor because it cannot operate with the corrupt thinking that is in place. When you hear Exec or Directors say we have to have $XM for the follow-on project and that number is 2x what it was before, how intelligent are these id–ts? Sales are not going to increase and the only way to be profitable is to cut the expenses. DCG has a 3-year already booked issue. Once the Exec and Directors were told anything and everything that could go to amortization needs to go to amortization. So, all that money being spent on projects (3-5x what they use to) are now spread across 3 years. This includes contractors. Yes, they moved contractor expense to the amortization table. With probably $150M of baked expense every year for the next 3 years right off the bat, there is no chance of recovery. When DCG was IBM, the budget was around $270M. Imagine a $270M budget when the first $150M is garbage for projects the previous years.

For those that are not there, you are far better off. The only reason to be there is for a paycheck and nothing more. You are not there for growth, stability, or praise. You are simply there to collect a paycheck. What's worse, is if you were a contractor, you'd be getting paid more.

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Post ID: @2leu+15nnWgXh

@2erp+15nnWgXh - looks like you're a different person than the original poster I was referring to.

I guess my question there is, do you anticipate a layoff in September for the Hyperscale team because of the poor performance? Or is the rest of DCG going to suffer because of the lack of hyperscale business?

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Post ID: @2nhz+15nnWgXh

Another layoff in September for sure... the bottom is falling out on Hyperscale

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Post ID: @2erp+15nnWgXh

Rory Read just became CEO of Vonage. Would have been an interesting candidate.

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Post ID: @1ctm+15nnWgXh

@1ycz+15nnWgXh - while your comments makes sense, it seems that with the move to Dynamics365 we are integrating far less with IDG than before. Beyond that I can't speak too much since I don't have the visibility that you appear to. Any idea why the Dynamics move seems to be separating IDG and DCG further?

With regards to the reduction in operations, do you think where we are at now is where we will be for the remainder of the fiscal, in terms of headcount, or do you anticipate another reduction?

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Post ID: @1suk+15nnWgXh

They will drastically reduce operations, integrate with IDG and become a China focused entity. China has a growing server market, the govt. wants backdoors that US players wont do and plays to our strengths in market familiarity and manufacturing. Why compete with HPE and Dell, when you can carve out a niche. There are no margins in Hyperscale and heavy competition from CMs here in US / we cannot compete with OEMs and CMs at the same time, very different models.

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Post ID: @1ycz+15nnWgXh

Good points from both of the posts below me - follow-up question; what happens if DCG doesn't find a buyer? Any idea? Because from the perspective of one employee, it seems irredeemable.

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Post ID: @1eyz+15nnWgXh

DCG has been up for sale for months but no one wants them. They are artificially inflating their growth prospects to convince the street that they are a viable business and get an offer. Who increases growth quotas when they haven’t met it for 6 years and with reduced head count. No wonder execs are heading for the exits.

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Post ID: @myp+15nnWgXh

What would help share price and give the market confidence? New CEO with experience and success in phones and/or data center.

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Post ID: @wyu+15nnWgXh

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