Lenovo boss walks as losses mount

 

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Posted on 5 Feb 2009 at 11:07

Lenovo's chief executive officer William Amelio has resigned, as the company's sales plunge.

Lenovo recorded a loss of $96.7 million in its third quarter, almost three times what had been expected by analysts. It was hit particularly hard in the US, a market Amelio was drafted in to grow, with sales down 20% on last year.

Lenovo attributed the losses to tough trading conditions, with its number of enterprise customers shrinking as budgets are trimmed.

Amelio's resignation will see the company return to completely Chinese leadership. Chairman Yang Yuanqing will take the top position, and his role will be filled by Lenovo's co-founder Liu Chuanzhi.

Lenovo will now focus on extending its dominance in its native Chinese market, as it looks to claw back ground from market leaders Dell and HP. Sales in China dipped 6.5% in the quarter.

"The next several quarters will remain very challenging for Lenovo," says the company. Lenovo plans to "adjust its business model" to tap demand for lower-cost products.