Lenovo plans to cut more than 3,000 jobs as the company’s net profit for the first quarter of 2015 declined by more than 50 per cent.

The company’s net profit declined by 51 per cent to $105 million for the first three months to June 30, 2015 compared to $214 million for the corresponding period last year. The company’s pre-tax profit for the first quarter also fell by 80 per cent. Meanwhile, the company’s revenue grew three per cent to $10.7 billion.

Following the decline in its net profits, Lenovo aims to reduce its operating costs by $1.35 billion annually and lay off about 3,200 employees – about five per cent of its worldwide headcount. The company also plans to restructure its mobile business.