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Acer slashes 300 jobs, reduces PC sales targets

Posted: 17 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:job cuts? EMEA? PC shipments? write-off?

Taiwan PC maker Acer has announced its plan to cut 300 employees from its operations in Europe, the Middle East and Africa (EMEA).

Recently, Acer announced an unexpected write-off of $150 million to clear inventory and disputed accounts receivable in its EMEA operations. Taking prompt action to address the issue and to deal with the market change in the region, Acer hopes that by lowering operating expense, the company can sooner get business back to the right track for growth.

"The planned lay off of 300 staff will be carried out in the next few months," said Acer chairman and CEO JT Wang in a shareholder meeting. The company is also slashing bonuses and remuneration of its staff and board members. In fact, Acer's board of directors (BOD) has voluntarily committed to cut their remuneration by 50 percent. Wang, on the other hand, is taking responsibility of the one-time write-off by relinquishing his remuneration from his position as director of the company board. Employee bonuses will also be slashed by 40 percent. The savings from the cuts will be allocated for 2011's operating expenditure.

With Acer's substantial loss in the write-off, Wang deeply feels regretful of the current situation and is dedicating his efforts in investigating the reasons behind the loss and to improving the company's internal management.

Affected by the inventory issue, Acer is reducing its target for tablet PC shipments to over 50 percent, from the original target of 5C7 million to only 2.5C3 million units. Nonetheless, Wang is still optimistic that PC sales will improve in 4Q11.

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