The Lenovo Group has reported a quarterly revenue of $10.7 billion, a 3 percent increase year-over-year, according to a press release issued by Lenovo.
The quarterly revenue, though, has missed analysts' expectations.
Reuters adds that analysts polled by the Thomas Reuters SmartEstimates are expecting a quarterly revenue of $11.29 billion.
The company also reported in the press release that the pre-tax income is at $52 million, a year-over-year decrease of 80 percent, and the net income is at $105 million, a 51 percent year-over-year decrease.
Lenovo has decided to take action with all of these missed expectations.
The company will be aligning its business and reducing its costs to return to profitability and sustainable growth, according to the press release.
Lenovo will be restructuring its mobile business group to better align the development, production and manufacturing of its smartphones.
The company will also be focusing more on the most relevant and attractive market segments.
The company said in the press release that they are reducing expenses by $650 million in the second half of 2015 and about $1.35 billion on an annual basis.
Included in the reductions are the cutting of 3,200 jobs in the company's non-manufacturing workforce around the world.
The slashed jobs represent 10 percent of the company's non-manufacturing headcount and 5 percent of the overall workforce of Lenovo, according to the press release.
Yuanqing Yang, chairman and CEO of Lenovo, said in the press release that the company experienced its "toughest market environment in recent years" last quarter.
To build long-term, sustainable growth, we must take proactive and decisive actions in every part of the businesses," he said. "We will reduce costs in our PC business and increase efficiency in order to leverage industry consolidation increase share and improve profitability."
The Wall Street Journal added that Lenovo lost its No. 3 position in terms of global shipments of smartphone makers in the second quarter.
It was surpassed by China's Huawei Technology and Xiaomi Corp.
