Acer Australia who are reeling from a 38% slump in sales and over $5M in losses have started mass sacking staff after a decision was made to stop local production of PC’s. The Company is also tipped to be withdrawing from the commercial and enterprise markets.
According to sources several staff were told yesterday that they were terminated and had to leave the Acer Australia premises “immediately”, the mass sackings are all part of a plan to concentrate on retail sales of PC’s.
Senior executives have said that senior management are engaging in a “blame game”.
One senior manager said “Discontentment and in-fighting is rife between the directors and at all levels of senior management, with each division pointing its finger at the other for the current state of affairs”.
Acer Australia will cease production of PC’s for schools, corporations and governments next week with future products fully imported.
The future of Charles Chung the long time CEO of Acer Australia is now being questioned with several executives blaming management aligned with Chung for the problems Acer Australia is facing.
In the past several senior managers including former general manager Nigel Gore and former business development manager Robin Tang have left the Company after falling out of favour with the current management team.
A current serving executive said that the new round of cuts “will significantly impact Acers about to continue in the commercial desktop and notebook markets. They claim that the decision to retrench staff and stop local production is all part of Charles Chung’s directive to shift Acer Computer Australia to a retail only operation.
They claim that Acer is beginning a gradual withdrawal of PCS from the commercial and enterprise markets.
“The intent is to wind down all field service operations and move to a return to base warranty model across the board” the executive said.
Global shipments of personal computers slumped 10.9 per cent in the second quarter, the longest decline in the industry’s history, as the market continues to be devastated by the popularity of tablets, research firm Gartner said recently.
Acer Australia who has suffered more than most saw their sales slide 38% last year with insiders claiming that the sales slide has continued into 2013 resulting in the decision to restructure the market.
Last year the Company set up two kiosks right opposite their retail partners, a visit to these kiosks by SmartHouse staff revealed that the Company was offering incentives to buy direct from the Companies own online store.
A visit to the Harvey Norman web site reveals that Acer is one of the few PC vendors whose products are not listed among the brands that Harvey Norman sell. Acer management claim that they have not been “dumped” as a supplier to the mass retailer.
Acer management have not returned our calls or offered any statement to the media on the Companies future direction.