Lenovo Faces Motorola Hangover, Cuts 3,200 Jobs As Sales Slide, Profit Tumbles

[Ron Burgundy]

By Gerry Shih BEIJING (Reuters) - China's Lenovo Group Ltd will lay off 10 percent of white-collar staff after sales of Motorola handsets fell by a third, raising doubts over the personal computer giant's bet that a money-losing brand it bought for nearly $3 billion will help it become a global smartphone leader. Lenovo, which uses the U.S. dollar in operations rather than the recently devalued Chinese yuan, said it plans to cut about 3,200 non-manufacturing jobs with a one-time cost of $600 million. Beijing-based Lenovo said the restructuring would yield savings of about $1.35 billion on an annual basis.

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