The news comes two months after Lenovo said it took a $50 million to $60 million hit due to tariffs during its most recent quarter. Of the company’s more than 5,000 U.S.-based employees, Lenovo has 2,000 employees at its headquarters in Morrisville, N.C., according to state records.
Beijing and Morrisville, N.C. based Lenovo said this week it will cut 3 percent of its U.S. workforce in a move that aims to shore up its costs, according to a statement.
The move comes two months after Lenovo said tariffs had a $50 million to $60 million impact on its most recent quarter.
“Like all businesses, we regularly review our cost structure to align with external market dynamics and make workforce adjustments where necessary,” said a statement provided by the company this week. “We are currently making strategic reductions in some parts of our North America business and will continue to invest and focus on initiatives that accelerate the growth and the overall transformation of the company.”
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Of Lenovo’s total 72,000 employees as of March 2025, about 16 percent, or 11,520, are based in North America and Latin America, according to the company’s 2024/2025 ESG report. A company spokesperson said Lenovo has “more than 5,000” U.S.-based employees.
When asked about the impact of tariffs during its May earnings call, Lenovo CEO Yuanqing Yang said while the company has built a “very flexible” supply chain with manufacturing in “more than 10 countries” outside China, the sudden imposition of 100 percent tariffs on China in March had a $50 million to $60 million impact on the company during the reported quarter.
“We are not worried about the tariffs. We are worried about the uncertainty and the quick changes. If you don’t know when the tariffs will increase or what it will be for certain countries, those uncertainties will impact performance,” Yang told analysts on the May call. “When 10 percent tariffs happened, we had already prepared for that to adjust pricing so that had no impact on our performance. When the 100 percent tariff was announced in March, it was implemented so suddenly we didn’t have time to prepare. It had a significant impact on our performance last quarter.”
Lenovo has not filed a WARN notice in North Carolina, according to an email CRN received from Andrew Beal, communications manager for the North Caroline Division of Workforce Solutions.
As of the fourth quarter of 2024, Lenovo was the 192nd largest employer in North Carolina with an estimated 2,000 employees at its headquarters in Morrisville, according to state records.
In May Lenovo said that fourth-quarter profit fell 64 percent year over year from $248 million in 2024 to $90 million in 2025.
However, for the full year, Lenovo reported what it described as “strong” revenue and profit increases, with annual revenue of $69.1 billion, up 21 percent, and net income of $1.4 billion, up 36 percent.
Sales of the company’s high-end servers, including its Neptune liquid-cooled series, spiked 63 percent year over year on the back of increased demand from enterprise, hyperscale and data center customers as one of the suppliers in the AI arms race.
The company also saw traction in its sale of PCs and Intelligent Devices last year with sales up13 percent year on year to $50.5 billion with 7 percent operating margins. The company controls 25 percent of the PC market worldwide and grew that share by 1.2 percent during its last fiscal year.
