SAN FRANCISCO — Lenovo Corp. said Monday it will shutter more than three-quarters of its 1,200-person manufacturing and logistics business in the country, citing weak demand from China.
The company said in a statement it will focus on expanding sales in China, where it has more than 200 employees.
The Chinese government and state-owned enterprises have long pushed a free trade agreement with the U.S. that aims to open up its economy to foreign goods and services.
The U.K.-based company said it will cut 1,600 jobs, including 400 workers at its manufacturing plants in Shanghai and Tianjin, and cut 2,000 at its logistics center in Shenzhen.
It also said it would lay off employees in the U, Europe and Australia.
Lenovo said it expects to report fourth-quarter revenue of $5.2 billion to $6.4 billion, up from $4.8 billion a year earlier.
The company has been a strong performer in the second quarter, with profit growing at an annualized rate of 7.5%.