Lenovo Trims Workforce

Lenovo Group, the world's No. 3 PC maker, will cut about 1,000 jobs, or 5% of its workforce, and move its headquarters to Raleigh, N.C.

The move will save Lenovo about $250 million and bring its cost structure in line with its competitors, the company said.

"These steps position Lenovo as a more effective global competitor while supporting our commitment to lead in innovation and customer satisfaction," CEO William Amelio said in a statement.

The company said the layoffs would be across the board, affecting various Lenovo business units, but would not affect any of the company's operations in China.

Lenovo also announced that it was consolidating its U.S. operations in North Carolina, relocating its headquarters from Purchase, N.Y., as well as its various operations in Alabama and Colorado.

Since acquiring IBM's(IBM Quote) PC business in 2005, Lenovo has embarked on a quest to grow outside of its traditional home base in China and capture a larger share of the worldwide PC market. In February, the company launched a new line of low-cost notebooks and desktops aimed at small and medium-sized businesses.

While Dell(DELL Quote), the world's No. 1 PC maker, has struggled recently as growth in the PC industry has slowed, a Lenovo spokesperson said the layoffs were not the result of challenges in the PC business, and that the company had no current plans for additional layoffs at this time.

"What we're looking at here is a short-term activity that hopefully positions us for future growth," said Lenovo spokesperson Ray Gorman.

According to Lenovo, the company expects to incur a $100 million charge as a result of the restructuring.