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Lenovo Q1 net profit down 51%, will cut 3,200 jobs in H2

Lenovo's quarterly revenue rose 3 percent to $10.7 billion, below analyst expectations, as the world's No. 1 P.C. maker pointed to "severe challenges" in selling smartphones in China and PCs and tablets around the world.

The company said that about 3,200 people in non-manufacturing positions would also lose their jobs to save $650 million in the second half of 2015.

The revenue result compared with expectations of $11.29 billion, according to analysts polled by Thomson Reuters SmartEstimates.

The Beijing-based company's net profit plummeted 51 percent year-on-year to $105 million, but was ahead of a 59 percent drop expected by analysts.

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Chief executive Yuanqing Yang said Lenovo was facing the "toughest market environment in recent years" and would restructure its lagging smartphone business at a one-time cost of $600 million.