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Acer CEO steps down as layoffs loom

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The chief executive officer of Taiwan-based PC maker, Acer Inc. today announced he is resigning because his company needs a new leadership team to navigate it through the battered personal computer market.

J.T. Wang, CEO of Acer, is leaving amid plans for a massive corporate restructuring that could result in the layoff of seven per cent of the company’s staff in order to save some $100 million by next year.

The company will take a one-time accounting charge of $150 million related to the layoffs and a “product plan termination,” according to Acer.

Wang, who joined Acer in 2005, will remain as company chairman until the end of his tenure in June while company president Jim Wong will assume the CEO post at the start of 2014.

Wong has been with the company for decades. He joined Acer in 1986. In an earlier interview, he said Acer should be creating innovative products rather than focusing on market share.

Wang said it is time for him to hand over the leadership to a new team to clear “the way for a new era.”

A newly formed advisory committee will also propose changes to Acer’s strategy. The company plans to release more competitive PC, tablet and smart phone devices.

Acer is among the worst hit vendors affected by the downturn of the PC market. Today, the company reported a $445 million loss for its third quarter. Its revenue at NTS92.2 was also down year over year by 11.8 per cent.

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