More technology giants shed jobs

Profits are under pressure in the IT sector

Hardware vendors are continuing to feel the crunch of the global economic slowdown as Dell and Lenovo this week took drastic cost-cutting measures.

PC manufacturer Lenovo said on Thursday it would cut 11 per cent of its workforce – some 2,500 employees - and reign in executive pay by more than 30 per cent in an effort to weather the storm.

In a statement Lenovo said it expects to report a loss for its fiscal third quarter ending on 31 December. The firm hopes the belt-tightening measures will save $300m (£197m) by March 2010.

The world's fourth largest computer maker will also consolidate its China and Asia-Pacific operations to streamline spending.

Lenovo chief executive Bill Amelio said in a statement that the actions "are necessary for Lenovo to compete in today's economy."

Meanwhile Dell announced it is moving all its Irish manufacturing operations to Poland by early 2010, resulting in the loss of about half the company's Irish workforce – some 1,900 jobs.

The move is part of a wider $3bn (£2bn) cost-cutting initiative.

Some 1,300 sales and marketing jobs will remain in Dublin and about 1,000 jobs in logistics, solutions procurement, engineering and product development.

Earlier in the week storage giant EMC announced plans to cut 2,400 jobs - about seven per cent of its staff.

The cuts will reduce annual spending by about $350m (£230m) in the year ahead compared to 2008, the company said, with savings increasing to about $500m (£328m) in 2010.