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Acer CEO resigns, layoffs imminent following a bad Q3

Acer is the latest organization that is feeling the effects of a bad quarter, and has mentioned that current CEO J.T. Wang will be retiring.

Acer CEO

Another well-known manufacturer is facing a tumultuous time following dismal quarterly revenues. Acer announced last week that it incurred a massive $446 million loss in the third quarter. The Taiwanese manufacturer faced a similar situation in Q2, during which it lost $236 million.

As a result, CEO J.T. Wang will be resigning, and will hand over the reins to President Jim Wong on January 1 2014. J.T. Wang will continue to serve as chairman until June 2014. Acer stock has taken a nosedive in the last five years, with a decrease in 57 percent in the value of its shares. Acer has also seen a massive 35 percent decline in sales over the same time last quarter, and this might be the catalyst for the change in management.

Acer also announced that it will cut 7 percent of its global workforce, which amounts to around 600 layoffs globally. It has been mentioned that this will save the manufacturer around $100 million in 2014.

The scenario is not isolated to Acer. PC sales in general have been decreasing over the years as consumers are moving on to a tablet form factor. It has been found that PC shipments fell 11.6 percent in Q2 2013 when seen against Q2 2012. Other manufacturers in this segment are also struggling, with the likes of Dell having to become a private organization to buy some time. Even in the mobile segment, manufacturers like BlackBerry are facing a tough time, and yesterday it was announced that BlackBerry’s CEO Thorsten Heins will be resigning, and that the organization will take a $1 billion debt to undergo restructuring.

While Acer does make tablets in the Iconia series, it is yet to find any significant consumer attention. It is trying to bolster its product offerings through devices like the Liquid S2, and needs to follow a similar strategy in the tablet segment to stay relevant.

Source: Acer

Harish Jonnalagadda
http://harishjonnalagadda.com
Harish Jonnalagadda is an avid reader of science-fiction novels. A long-time Arsenal fan, his other interests include gaming, basketball and making music. He also likes tinkering with hardware in his free time.

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