Struggling PC Company Acer has seen their global CEO dumped due to what has been described as “shocking” losses.
Earlier this year ChannelNews reported that the local subsidary had reported looses in excess of $5M with further losses expected this year.
In a bid to reduce costs Acer Australia has recently let go all of their Victorian Business Development Managers replacing them with new staff on lower salary packages.
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| Acer CEO JT Wang |
The Company has also appointed three Lenovo resellers in what has been claimed is “a bid to start a price war with Lenovo and long term Education player – LWT who services a majority of the Victorian education market.
Last night Acer global CEO J.T. Wang was forced to step down due to poor financial results.
Acer reported that sales plunged 11% year-on-year to $34.9 billion during the quarter ending October 31.
The Company has admitted that hundreds of jobs will be eliminated” including at Acer Australia.
Acer said that they have recorded a net loss of US $442.2 million in the three months ended Sept. 30, largely due to a write-down on unsold devices.
During the last quarter Acer shipped 6.7 million PCs which was down from 8.6 million a year earlier, according to Gartner estimates. In the third quarter, Acer’s global market share was at 8.3%, trailing Lenovo, Hewlett-Packard, and Dell.
The Taiwanese company said the 59-year-old Mr. Wang’s exit from the positions of chairman and chief executive was part of a broader restructuring at the company. ChannelNews has been told that changes are set to take place in Australia.
The Company said that they currently have in place a program to lay off 7% of its total workforce, which would result in an annual savings of $100 million starting next year.
“Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to pave the way for a new era,” Mr. Wang said in the statement.
Corporate President Jim Wong will take over Mr. Wang’s CEO duties from January.
Acer says that it expects shipments for its notebooks, tablet PCs and Chromebooks to decrease by 10% in Q4 compared to the previous quarter.
