Lenovo will lay off around 500 employees across multiple business units and locations globally, including the company’s American headquarters in Morrisville, North Carolina.

Sources speaking to WRAL said that the job cuts will hit 20 percent of the Lenovo’s 200-person Data Center Group.

Lenovo R&D center in Hong Kong
Lenovo R&D Hong Kong – Lenovo

Lenovo Layoffs

Ashley Kusowski, head of public relations for Lenovo’s Triangle Park-based Data Center Group, said: “Positions across business units, functions, and geographies are impacted including the Data Center Group and Morrisville, NC. We don’t break out numbers by office location, business unit, or function.”

The cuts to the data center section come despite the unit being Lenovo’s fastest growing business, increasing revenue by 12.5 percent year-on-year up to $6 billion at the end of the 2019 financial year. While revenue has increased, the division has struggled to make a profit.

In a statement, Lenovo said that after these cuts go ahead the company will have approximately 5,000 employees in the US and 57,000 globally.

Speaking to CRN, a spokesperson for the company said: "While these actions aren’t easy, they are necessary as we continue to execute our strategy for intelligent transformation while achieving sustainable, profitable growth."

Despite the cuts, Lenovo’s job page still lists over 200 jobs. This includes data center positions across Europe, the US and Asia as well as jobs in the company’s American headquarters.

As Lenovo is a Chinese company, the US-China trade war may impact the company’s business.