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Acer CEO Wang steps down after poor Q3 results
2013-11-06 08:40:00| Telecompaper Headlines
(Telecompaper) Acer CEO and Chairman J.T. Wang has decided to step down as CEO. He will remain chairman until his term expires next June, and Acer president Jim Wong will take over as CEO effective 1 January 2014. The move follows another difficult quarter for Acer. The company posted a net loss of TWD 13.1 billion (USD 445 million) for the third quarter on another impairment charge for previous acquisitions, and revenues fell 11.8 percent year-on-year to TWD 92.15 billion. The operating loss totaled TWD 2.57 billion due to extra costs for rolling out Windows 8.1, inventory management and compensation for the eMachines consumer litigation. Acer expects shipments of its notebooks, tablet PCs and Chromebooks to decrease by 10 percent in the fourth quarter compared to Q3, while the gross margin should improve. The company announced plans to set up a Transformation Advisory Committee with board member Stan Shih as Chairman and Acer co-founder George Huang as executive secretary. The committee will propose changes in the company vision, strategy and execution plans and work with the management team to carry out the transformation. To support new development needs, the board also approved the issue of 136 million new shares for a capital increase. The restructuring will lead to a one-time cost of USD 150 million in Q4 and a 7 percent reduction in the worldwide workforce, resulting in cost savings of USD 100 million annually from 2014.
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Category:Telecommunications
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