The world’s largest maker of personal computers is facing a major decline in revenue in the third quarter. Lenovo saw a 24% decline in revenue in the October-December quarter as compared to last year’s same quarter, this is the largest fall in revenue that Lenovo has faced in the last 14 years.
We are talking about China’s Lenovo Group Ltd which saw a boost in electronic sales at the time of the Corona outbreak during which people switched to working from home due to which demand for PCs went high. But demand started declining in the July -September quarter last year.
Lenovo in an interview with Reuters said that the market was in the process of digesting excessive inventory which needed some time. Lenovo Chief Executive Yang Yuanqing said to an analyst of Reuters “the entire PC and mobile market experienced a severe downturn in the last quarter and the company was looking to reduce expenses and improve efficiency”.
Though the company has not made any remark over lay off of employees to maintain the profitability of the company there is a high chance that this can happen. Rival companies like HP and Dell have announced plans to cut about 6,000 and 6,500 jobs to maintain the finances of the company.
The global recession and changing economic conditions because of post-Covid problems and war are among some of the reasons that are causing the market to face such problems.
