Chinese tech giant Lenovo is slashing over 3000 jobs in what CEO Yuanqing Yang calls a “tough market environment,” said the company on Thursday. Their Q1 earnings report showed a 51% drop in net income since the same time last year.

The company will cut one out of every 10 white collar jobs, totaling 5% of the company’s staff, in hopes of yielding $1.3 billion USD in savings annually. Lenovo shares fell by over 8% on Thursday following the release of the results showing a $300 million USD loss in its mobile division.

Lenovo acquired Motorola from Google last year, but the company has failed to thrive under its new management, with handset sales dropping by almost a third. Results from their PC division were similarly disappointing, declining by 7% over the last year.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com