Acer cuts staff in Europe, takes $150 million charge

Moves are to cut costs and streamline operations

Acer is laying off 300 employees in Europe and taking a charge of US$150 million, as the company tries to streamline operations following the departure of CEO Gianfranco Lanci in March after a conflict with the company's management.

The layoffs aim to cut costs and to meet "the market change and to face challenges ahead," Acer said in a statement on Wednesday. The write-off came following a discovery of abnormalities in the company's distribution channel in Europe, Middle East and Africa, that was revealed through an investigation conducted after Lanci's departure, it added.

Acer has been hurt by the slower-than-expected growth in the PC market globally. Lanci's resignation came just under a week after Acer said revenue from PCs in the first quarter of fiscal 2011 would fall short of expectations due to weak demand in Western Europe and the U.S.

Acer's PC shipments have been declining in recent quarters, and Acer founder Stan Shih has publicly called for the company to change its focus from PCs to tablets and smartphones.

The one-time charge comes after audits of the EMEA (Europe, Middle East and Africa) channel revealed high inventory levels and disputed accounts receivable, including abnormalities in "the accounts receivable from channels in Spain," Acer said.

The audit also showed improvements that could be made in the channel. The company will propose action and take steps to improve operations, Acer said.

In order to cut costs further, the company is also recommending that employee bonuses for 2010 be cut by 40 percent. The board of directors have agreed to cut their own remuneration by 50 percent, Acer said.

Acer CEO J.T. Wang has also agreed to cut his remuneration for 2010, the company said.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesacerlayoffs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?