International computer and smartphone company Lenovo has announced 3,200 job cuts as it reported a halving of profits.
First-quarter net profit plunged 51% to $105m (£67m). Revenues rose 3% to $10.7bn, but this was below forecasts.
Lenovo said it had been facing the "toughest market environment for years", reporting a steep decline in sales at its mobile division.
The job cuts represent about 10% of its non-manufacturing employees and 5% of its global workforce,
Lenovo, the world's biggest PC-maker, said the cuts were part of a cost-cutting programme aimed at saving $650m in the remainder of 2015.
Lenovo reported significant declines in its global computer and tablet sector, as well as increasing competition and slowing growth in the smartphone market.
Chief executive Yuanqing Yang said the company would also restructure its smartphone business.
Last year, the company last year bought the Motorola brand from Google for $2.9bn to boost its position in the market.
However, Motorola's contribution to Lenovo's smartphone shipments fell 31% from a year earlier to 5.9 million units.
Lenovo's mobile division recorded a pre-tax loss of $292m in the three months to the end of June.
Lenovo said its PC business reached a worldwide share of 20.6%, with a 13% stake in the key US market.