Acer Incorporated (2353) CEO JT Wang To Step Down In June
Acer Incorporated (TPE:2353) CEO and chairman JT Wang is stepping down in June next year. Acer is in the middle of a major restructuring where hundreds of jobs will be cut. Acer Incorporated (TPE:2353) is the world’s fourth largest PC maker based on shipments and they posted a worse-than-expected net loss for the third quarter as inventory has piled up.
The overall PC industry has been hit due to the popularity of smartphones and portable computing devices. PC shipments in the third quarter dropped 8.6% from one year earlier, according to Gartner. This is the 6th straight quarter in declines.
Acer Incorporated (TPE:2353) recorded a net loss of NT$13.12 billion ($442.2 million) for the three months ended September 30th. This is largely due to a write down on unsold devices and a NT$9.94 billion charge on the company’s acquisitions of Packard Bell and Gateway. The values of those companies dropped as the PC market as a whole dropped.
Acer Incorporated (TPE:2353) shipped 6.7 million PCs for the third quarter, which is down from 8.6 million a year earlier, according to Gartner. Acer Incorporated (TPE:2353) market share for the third quarter was at around 8.3%, which is behind Lenovo, HP, and Dell.
Acer Incorporated (TPE:2353) will be laying off 7% of their total workforce, which should result in annual savings of about $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,” stated Wang.
Jim Wong, the Corporate President at Acer, will be taking over Wang’s CEO responsibilities from January. Acer is still looking for a new chairman. Wang has worked at Acer for over 25 years. Wang became Acer CEO and chairman in 2005.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry