Chinese computer maker Lenovo is to cut 2,500 jobs worldwide due to the global economic downturn.
The cuts, which represent 11% of the workforce, are aimed at saving $300m in the coming financial year to remain competitive, according to BBC News.
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Lenovo has been hit by unprecedented global economic challenges, resulting in a reduced demand for personal computers, the company said in a statement.
This is the third round of job cuts since Lenovo bought IBM's PC business for $1.25bn in 2005.
The announcement comes amid rumours that IBM is planning thousands of job cuts as it faces up to the economic downturn.
About 16,000 employees will be affected, with the layoff date expected to be 23 January, according to a posting by a union member on the Alliance@IBM website.