NEW YORK (TheStreet) -- Lenovo (LNVGY) stock is decreasing 8.9% to $19.86 in morning trading on Thursday, after the company reported lower than expected revenue for the first quarter of fiscal 2016 and announced it will cut jobs after Motorola shipments dropped by a third.
The company reported earnings of 94 cents per diluted share on revenue of $10.7 billion for the quarter ended June 30.
Analysts surveyed by Thomson Reuters estimated for revenue of $11.29 billion.
Last year, China-based Lenovo posted earnings of $2.03 on revenue of $10.4 billion for the fiscal first quarter.
Additionally, the company will reduce its total workforce by 5% as Motorola smartphone shipments declined 31%.
Lenovo will cut its non-manufacturing staff by 10%, or about 3,200 jobs, which will entail a one-time costs of $600 million and $1.35 billion in annual savings.
Lenovo acquired Motorola from Google (GOOGL) for $2.91 billion last year.
Chief Executive Yang Yuanqing told Reuters that, between the smartphone competition and lower demand for PCs, the company is in its "toughest market environment in recent years."LNVGY data by YCharts