Top PC Maker Lenovo has realized its first loss in more than six years. This follows a major restructuring exercise where it laid off 3,200 staff and wrote off $300 million in unsold smartphones.

The company has reported a better than expected second quarter net loss of $714 million on revenue of $12.2 billion. However charges related to its Motorola acquisition and unsold phones forced a hefty $714 million net loss for the first time in six years. In terms of revenue, Lenovo was up 16 percent year-on-year and 15 percent on the previous quarter, but over $923 million was spent on “restructuring costs” and that smartphone write-down.

Despite this however, Lenovo estimates that the changes will save it around $650 million in costs during the second half of the year, and thus approximately $1.3 billion annually.

While the company said the 15 million PCs that it shipped in the three-month period represented “a 6.6 point premium to the overall market decline of 11.1 percent,” the $8.1 billion revenue that was generated is down 17 percent on the same quarter last year. And Lenovo’s smartphone sales grew 11 percent year-on-year and 16 percent quarter-on-quarter to reach 18.8 million units.

Lenovo says to combat those challenges, Motorola, has been integrated into its central mobile business. The company says in addition, it has increased its focus on markets outside of its native China as those sales “now account for 70 percent of revenue”.

The company says it expects that these changes, a “streamlined” set of smartphone, tablet and smart TV products are what can turn its mobile business profitable within the next six months.