6/16/2011 10:42:00 AM
Acer cuts jobs and slashes tablet shipments
Acer announced it will cut 300 jobs in Europe as it slashed its tablet shipment targets by 60% this year.
The company announced yesterday (15 June) that it would slash tablet shipments from five to seven million units to about three million units in the face of increasing competition from Apple’s iPad.
The computer giant now expects to sell 800,000 tablets in each of the second and third quarters.
The job cuts, which are due ‘in the next few months’, follow massive losses in Europe. These include a $150m write-off for excess inventory and disputed payments in the EMEA.
Acer chairman J.T. Wang said at the company's AGM: We expect our inventories in Europe to fall to a normal level by the end of this month and we plan to lower our inventories in the region further in the third quarter. Acer's decline in market share in Europe will stabilise in the second half.’
Acer expects its notebook PC shipments to continue to fall but recover in the fourth quarter.