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 Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issueslayoffsacer

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?