According to Lenovo's fiscal year third quarter report, "revenue declined by 24 per cent year-on-year to US $15.3 billion."

The outfit’s Intelligent Devices Group (IDG), which includes computers, smartphones, tablets, and other hardware saw its revenue fall by a third and operating profit fell by 37 per cent year-on-year.

The company's report states that PC sector shipments "regressed to pre-COVID levels" while there was still too much product in the channel, though Lenovo claims IDG still maintained its leadership in market share.

Lenovo CEO Yang Yuanqing and chief financial officer Wong Wai Ming said that the company needs to cut $150 million in costs, which includes an overall reduction in operational spending as well as workforce adjustments “where necessary and appropriate.”

If Lenovo moves ahead with layoffs, it would be joining Dell, Microsoft, Meta, Alphabet, Coinbase, Amazon and Salesforce.

However, Lenovo is confident it will make money. IDG is still a market leader and the company still has plenty of cash. Lenovo claims that "the market might stabilise sooner than many expected in 2023,"

Lenovo and its competitors are still producing new devices, having updated a large swath of their lineups at CES 2023. Despite inflation, fears of a recession and the fact that many people bought new computers in the last few years, all major PC manufacturers face a tough road ahead as they navigate a path back into people's wallets.