500 layoffs are being reported by WRAL. No breakdowns provided as it relates to location, business unit or function. DCG (Data Center Group) is estimated to have lost about 200 people (out of 1000, approximately 20%). The head of PR in RTP confirmed this - anyhow, for now it's all mostly guessing but at least we have some initial numbers to work with.
I feel the number is a bit bigger than what they are reporting but we'll know soon enough (or not)!
This is not a big surprise to me. After seeing how Lenovo had treated their employees while working there, they are quick to lay off half of DCG and soon will be tackling the contractors next. A lot of this maybe from their tariffs they got hit that has caused them to lose business and its inability to keep up with DCG business. They state they are "people first" but they are a money first company. Just another corporation that will do whatever it takes to save itself some money even if it means laying off a bunch of people and for what? a couple hundred grand? possibly what...a million? its pocket change to them really...
lots of misleading managers
hiring new employees for future growth.
older employees as long as no related connection will be in layoff list
Lenovo is a joke. Too many IBMer's still running the show. From experience it's not what you know but who you know. Scott Ottman got his daughter hired as a favor... she is LAZY... and when layoff's came around, even though she was the last hired, she was save. What a joke.
They need to get rid of the Intel d---beats - it's a chain migration from Oregon to North Carolina. They know chips - they do not know software, cloud, applications, AI, Blockchain, Hyperconvergence, SD-WAN, etc. Lenovo will grow their DCG business in the short-term, only because they are so far behind in the Data Center space and they can grow through financial engineering. But, they don't have the internal DNA to be a Data Center leader.
The COO of DCG is an id--t. Look him up. Dumb as a rock. But happy to promote himself as The Man. Slashing and burning. DCG is dead.
Executive compensation is tied to direct overhead, expense, employee overhead, headcount. Whatever way you want to wordsmith it. Their metrics are NOT the same as the metrics used for bonuses for employees.
@ZiaHSLb-1pnj this could not be more TRUE! I heard that executive bonuses are tied to their direct overhead. Literally hundreds of thousands of dollars are being spent in Morrisville on solar panels, new toilet paper and hand towel dispensers, "workplace transformation" (lockers, stand-up desks, etc.) but that comes out of the facilities budget. If you're a band 9 or above your bonus is tied to your bottom-line. "People First"? Yeah right.
As an employee you want to learn about the company. It is impossible. There are a bunch of shell companies, Legend Holdings being one, that own Lenovo. Heck the Chinese communist party probably owns most of it.
The bonds (Huge debt) are not rated by Moody’s because none are denominated in dollars. Best I can find out the debt is rated at BBB or maybe C.
Lenovo stock is probably worthless and I just don’t realize it.
The president came in, has no plan, has no leadership skills, is only doing this to get his big bonus. The bottom line is the people who should be fired are all senior and executive management. These guys have no clue how to run a company and are just bleeding the organization dry. Its a shame because there is a lot of smart people that got cut and Lenovo dcg has good products just the worst leadership on the planet.
What departments are supposed to be hit by round 2?
Round 1 today- Round 2 coming soon!!!
The whole Motorola and server purchases where a debacle. Lenovo will never repay all the debt they took on.
YY should resign.
I heard 300 in DCG, it looks like they are reporting 200, there are rumors of 380 and I have 300...
I think that 200 may be RTP only... Who knows... They are hiding it (not that good though)
"Lenovo confirms layoffs
https://www.bizjournals.com/triangle/news/2017/10/18/lenovo-confirms-layoffs.html"
Please check the date. Hint: It´s in the URL.
I heard 380 DCGers laid off in RTP, which sounds closer to 40%. The other 120 from overseas, so US hit disproportionately hard.
The press release says it all "Lenovo will continue to make adjustments as needed as part of our ongoing management of the business.” Loosely translated- MORE ARE COMING!
Hope a couple of previous mangers got the boot today at Lenovo.
Hopefully they will move far far way.
What happened to all that positive news the execs were promoting.
Fake news!
Media Coverage:
Sources: Lenovo laying off 20% of server group employees in RTP
https://www.wraltechwire.com/2019/05/29/sources-lenovo-laying-off-20-of-server-group-employees-in-rtp/
Lenovo lays off 500 workers, including jobs in RTP, Morrisville
https://www.wraltechwire.com/2019/05/29/lenovo-lays-off-500-workers-including-jobs-in-rtp-morrisville/
Lenovo says it is laying off 500 workers, including some in Research Triangle Park
https://www.newsobserver.com/news/business/article230935878.html
Lenovo confirms layoffs
https://www.bizjournals.com/triangle/news/2017/10/18/lenovo-confirms-layoffs.html