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Acer Q3 PAT NT$-13.12 Billion ; Reducing Worldwide Manpower by 7%

Published: Nov 06,2013

Acer announces on Tuesday that, according to financial results for Q3 2013, the profit after tax was record-breaking NT$-13.12 Billion, due to a non-cash related intangible asset impairment of NT$9.94 Billion. Acer will cut its worldwide employees by 7% to decrease the expanding loss and carry out the internal restructuring, while Chairman and CEO J.T. Wang resigns as well as board member Stan Shih resumes.

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CEO Resign, Acer Begins a Comprehensive Restructuring

TAIPEI, TAIWAN, Acer announces that the resignation of J.T. Wang, Chairman and CEO, has been approved by its board of directors...

Acer took over the Gateway, Packard Bell, eMachines and ETen several years ago; nevertheless the benefit is failing to meet expectation. The intangible asset impairment loss, which includes trademarks and goodwill, is NT$9.94 Billion and profit after tax was amount to NT$-13.12 Billion due to the three-quarter operating loss of NT$2.57 Billion.

The company decides to launch personnel and business restructuring plans, including reducing manpower, product plan termination with related product tooling and legal fees and predict to cut its worldwide employees by 7% resulting in Operating Expense savings of US$100 Million annually.

With the corp. loss is getting wider, J.T. Wang, Acer Chairman and CEO, tendered resignation and Jim Wong, Corporate President, will succeed as the new CEO from January 1, 2014. Wang shall remain in chairmanship until the end of his tenure next June without choosing the new successor yet. Acer’s founder, Stan Shih, will go back and to be Chairman of Acer’s Transformation Advisory Committee to implement reformed project.

Before taking a back seat, CEO Wang give three strategies, Profiting, restructuring and transformation for Acer’s restruction and looked forward to Acer’s business turnaround in 2014.

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