On Wednesday, CEO and Lenovo Group President William Amelio resigned. Lenovo’s chairman Yang Yuanqing will be replacing him.

Another change; senior vice president of global operation, Lenovo, Rory Read will be taking over as president and chief operating officer. It has been speculated that William Amelio resigned because the company has seen a great profit decline. The recorded quarterly loss faced by the company is said to be US$97 million.

Instead, Lenovo has stated that the reason of resignation was a maturing contract. He was working for them on a 3 year contract, said Lenovo. Still, he will be acting as Lenovo’s adviser till the end of September. This was explained by the company to Hong Kong Stock Exchange in a filing.

The filing states, “Mr. Amelio confirmed that he has no disagreement with the Board and there are no matters in respect of his resignation that need to be brought to the attention of the shareholders of the Company.”

William Amelio is the second American CEO to step down from the position. He was a former executive at DELL and was currently working with Lenovo. At Lenovo he was leading broad restructuring of Lenovo’s worldwide operations.

Lenovo is a Chinese computer manufacturer company which is seeing loses like many other computer manufacturers world over. Lenovo acquired IBM’s PC division in 2004.

A great and sudden change like this looks quite awkward and raises many suspicions. It seems more like a forced resignation than maturing of a contract.