Lenovo has announced some major changes in its top management, with President and CEO William Amelio resigning after the PC maker reported a $97 million loss for the last three months of 2008, which represents both a 20 percent drop compared to the previous year and its first loss in nearly three years. Like many others in the industry, Lenovo blames the weak global economy for its dwindling sales and said it plans to turn its focus back to China hoping to reverse its fortunes.
The company says it has grown successfully on the international stage, and in fact they currently stand as the fourth largest computer maker in the world, but China still represents around 45 percent of their total sales and is the foundation of Lenovo's global business. As part of their shift in strategy, Amelio will be succeeded by Yang Yuanqing, who will step down from his current position as chairman of Lenovo to take on the CEO role while founder Liu Chuanzhi will take the chairman spot.
The move echoes the earlier returns of Michael Dell to Dell and Steve Jobs to Apple during the periods when these companies they helped build struggled to compete, but whether a renewed focus on China will help Lenovo regain strength in the short term remains to be seen.