China’s Lenovo Group reported a 24 per cent revenue decline for the third quarter, its largest revenue fall in 14 years as global demand for electronics slumped, and said it would look to cut spending and make workforce adjustments.

The world’s largest maker of personal computers (PCs) said that total revenue during the October-December quarter was $15.3 billion, down 24 per cent from the same quarter a year earlier.

The results trailed an average Refinitiv estimate of $16.39 billion drawn from seven analysts.

The outbreak of COVID-19 in 2020 provided a huge boost in electronic sales for Lenovo and its peers worldwide as many people opted to work remotely and replaced or upgraded their equipment.

However, demand has begun to fall and Lenovo’s revenue started contracting in the July-September quarter last year.

Lenovo Chief Executive Officer Yang Yuanqing told an analyst call after its earnings that the entire PC and mobile market experienced a “severe downturn” in the last quarter, and the company was looking to reduce expenses and improve efficiency.

Lenovo is aiming to reduce its run rate operational expenses by approximately $150 million to achieve a medium-term goal of doubling net margin, its chief financial officer, Wong Wai Ming, added.

“This includes overall reduction in operational spending as well as workforce adjustments where necessary and appropriate.” he said.