This decision is based on financial report for the first quarter of the 2015/16 financial year facing the dramatic decline of PC sales. Lenovo will reduce about 3,200 non-manufacturing employees around the world which is 10% of non-manufacturing employees and 5% of total employees (Lenovo is having 60,000 employees worldwide totally).
Lenovo Group is expected to save about USD650 million during this action.
By the way, Lenovo yuan bonds trade down after China devaluation move, and Lenovo Group Ltd (0992.HK) on The Hong Kong Stock Exchange (HKEx) is decreasing and it is at 3-Year Low for now, so this action to cut 5% of total employees looks very reasonable in this situation.
Some analysts are suggesting for now to buy 0992.HK because of oversold condition - as we see from the chart below - it may be the time to buy Lenovo Group Ltd (0992.HK) on The Hong Kong Stock Exchange:
