Lenovo Sees up to $100M in Restructuring CostsBy Reuters | Print
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PC maker Lenovo plans to reduce costs even further and will book another big restructuring charge. Cost cutting will include layoffs and other measures, according to Lenovo.
HONG KONG, Nov 7 (Reuters) - Lenovo (0992.HK) expects to book another $75 million to $100 million restructuring charge "going forward", its top executives said on Friday, as the world's fourth-largest PC maker struggles to reduce costs in a difficult market.
Executives on a conference call did not put a timeframe on that expense, but stressed that the figures included a $24 million restructuring cost booked in the fiscal second quarter.
Analysts say the firm must continue to trim costs by laying off staff, among other measures.
Executives added that Lenovo, which saw margins slide in the second fiscal quarter as heated competition pressured prices, hoped to stabilise gross margins at current levels. (Reporting by Joanne Chiu; Editing by Anne Marie Roantree)
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