Lenovo was replaced by lesser-known Chinese brands Oppo and Vivo as part of the top five smartphone vendors for Q1 2016. (Photo : Getty Images)
Lenovo recently confirmed a drastic company move by laying off a considerable number of employees that hinted the company shutting down.
Last year, it can be recalled that the same tech company also lay off 3,200 individuals as part of their mobile and PC streamlining. The said employee reduction process is part of the strategy of increasing the efficiency of the company according to previous reports
However, since the said move of trimming down some employees globally, there is still no significant impact or growth being noticed. The iconic smartphone brand, Motorola, which was purchased by the said tech giant from Google has not flourished and reaffirmed its former dominance in the market. It seems like the acquisition has never improved the mobile standing of the Chinese-owned company in the market.
According to some experts, the weak branding and non-existent of distinguishable features are to blame. Apart from that, other sales channel was not properly utilized by the company leading to their stagnation.
"The first is the shift away from carrier-led smartphone sales to direct and open market sales. Its competitors have successfully leveraged alternate sales channels to beat Lenovo," Forbes quoted analyst Ben Stanton as saying.
Another major blow to the company was the Chinese government regulation on state-run carriers, reducing their marketing expenses including smartphone subsidies. And for lack of strong branding and commercial presence, the company suffered a lot. Consumers tend to purchase established brands, and considering the price war going on in the background, the company considerably lacked proper preparation according to experts.
And with such criticism and comments regarding their current brand and status, the Chinese-owned company answered their challenges by making another adjustment in their workforce, impacting more or less two percent of its approximately 55,000 employees globally. In a statement received and published by The Verge, the expressed that:
"The company is also making adjustments in other areas of the business as part of a continued effort to manage costs, drive efficiency and support ongoing improvement in overall financial performance. While these actions are never easy, they are a necessary part of our continued efforts to ensure long-term, profitable growth across all of our businesses."
And hopefully with this another bold move done by a major brand in the communications and tech industry, significant changes will occur. Alteration and reduction will hopefully lead to success and not the other way around, as most remaining Lenovo employees are hoping for.
Watch here below company history:
