The CEO of Lenovo, William Amelio announced his resignation today as his three year contract with the company comes to a close. Insiders speculate that the resignation stems from the company’s stunning $97 million loss for the third quarter. This number is a dramatic comparison to Lenovo’s $172.6 million profit in the same quarter the previous year.
Amelio will remain with the company until September 30 as a special advisor while Yang Yuanqing takes over the CEO position. Yang Yuanqing had filled the position previously until 2005 when he was appointed head of the chair.
Last month, the company had announced that they would be laying off 11 percent of its workforce. Lenovo contributes a market shift toward entry level personal computers, aggressive pricing, and currency fluctuations had adversely affected Lenovo’s gross margin. The company has plans to go through several stages of restructuring in order to save money and recover during the recession under the leadership of Yuanqing.