Chinese Lenovo records the largest decline in revenue in 14 years in the third quarter

China’s Lenovo Group reported a 24 percent decline in revenue in the third quarter, the largest in 14 years, as global demand for electronics shrank and the company said it would cut spending and reshuffle the workforce.

The company, the world’s largest maker of personal computers, reported on Friday that total revenue in the third quarter from October to December was $15.3 billion, down 24 percent from the same quarter a year earlier. Those results were lower than an estimate put by Refinitiv based on the opinions of seven analysts of $ 16.39 billion.

The outbreak of Covid-19 in 2020 gave electronics sales from Lenovo and similar companies around the world a huge boost, as many resorted to working remotely and updating their devices.

But demand began to wane and Lenovo’s revenue began to contract in the July-September quarter of last year.

Company officials did not explicitly disclose the existence of a plan to lay off employees as part of their efforts to reduce operating expenses. Two rival companies, Dell and HP, announced layoffs.

On Friday, Lenovo shares in Hong Kong fell 3.14 percent.