Lenovo to reorganize into four business divisions

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Just a few days after Lenovo unveiled plans to buy IBM's low-end server business, the Chinese PC maker has announced that it will split its businesses into four divisions: PC, mobile, enterprise, and ecosystem and cloud services. While the first three divisions are self explanatory, the ecosystem and cloud services division would focus on content and services for the company's user base.

Gianfranco Lanci, who is currently the chief of Lenovo's European operations, will lead the PC division. Gerry Smith, who handles Lenovo's North America and Latin America operations, will lead the enterprise division. Liu Jun, who heads Lenovo's consumer-product business, will lead the mobile division. George He, who is Lenovo's Senior Vice President and Chief Technology Officer, will lead the ecosystem and cloud services division.

The company said that the recently announced acquisition of IBM’s x86 server business would be integrated into the enterprise division, once the deal gets regulatory approval.

The move, which is set to take effect April 1, is seen as Lenovo's attempt to compete more aggressively with rivals like Hewlett-Packard and Dell. The company's current business structure consists of only two divisions: business and enterprise. According to a Lenovo spokesperson, the new structure would help the company to focus on key market opportunities and streamline internal processes.

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