Lenovo, the Chinese personal computer maker, said on Thursday it would cut 11 per cent of its workforce and forecast a “material loss” for the last quarter of 2008, becoming the latest company to be hit by falling demand for PCs.

Shares in Lenovo fell 26 per cent – their steepest one-day fall in a decade – after the company said it would cut 2,500 jobs and reduce executive compensation by 30 to 50 per cent as part of a restructuring plan.