14 DAY TRIAL // Brexit has left many companies doing business in the United Kingdom wondering whether they should take any measure to deal with UK’s voted exit from the European Union, and Lenovo is one of the biggest names in the tech industry doing this as we speak.
Lenovo is currently one of the largest PC manufacturers, and a fifth of its earnings comes from Europe, so it’s not surprising that the company is looking into ways to deal with a potential collapse of the British pound, but also to cut costs in the United Kingdom should this be needed.
No major impacts on Lenovo
Chief Financial Officer Wai Ming Wong said on Thursday that Lenovo is indeed considering several measures following Brexit, but no decision has been made just yet, so specifics cannot be announced. He did reveal, however, that price increases for the products the company sells in the United Kingdom as well as job cuts in the region are two measures currently on the table.
“I wouldn’t exactly want to nail down to something. If you were to cut costs, is it really headcount that’s the only area?” he was quoted as saying.
And yet, Wang explained that, while price hikes are indeed possible, Lenovo doesn’t want to pass the whole responsibility for Brexit to buyers, so other measures might be employed.
“To the extent that we need to pass things on to the customer, we will. Rather than just increasing the price to pass the costs to customers, we want to see other ways to generate efficiencies and grow the business. So I wouldn’t say just increasing the price is the only way to deal with this situation,” he continued, adding that he doesn’t expect any major impact on Lenovo following Brexit.
Technology giant Microsoft has already revealed that it’s not looking into any significant changes for the United Kingdom following its decision to leave the European Union while Dell stated that it was looking into a 10 percent price increase for its products in the coming months.