Acer CEO resigns as company struggles huge loss in Q3

Former CEO : Wang

New CEO : Jim Wong

Taiwan’s Acer Inc, the world’s no.4 PC vendor, posted a worse-than-expected net loss of T$13.12 billion ($446 million) in the third quarter, with the company aiming to revamp itself with a new CEO and job cuts.

Acer chairman and CEO JT Wang is announcing his resignation from the PC maker today following further disappointing financial results. Wang, an outspoken critic of Microsoft’s Surface tablet, will step down as Acer CEO on January 1st, but will retain his chairman position until the second quarter of 2014 to assist with existing commitments. Acer president Jim Wong will take over as CEO in January in a clear effort to address the struggles the company is facing.

Acer is still the fourth largest PC manufacturer in the world, but the company’s revenues have taken a hit recently as PC sales have slowed across the industry. The company reported a net loss of $446 million in Q3, and it now plans to cut its staff headcount by seven percent globally in an effort to save $100 million in annual operating expenses. While PC sales continue to impact manufacturers, the top three — Lenovo, HP, and Dell — experience small growth in the most recent quarter according to IDC. Acer’s PC sales dropped by nearly 35 percent in Q3, highlighting the problems the company faces to turn its business around.

“Q3’s operating loss was mainly due to the gross margin impact of gearing up for the Windows 8.1 sell-in and the related management of inventory,” the company said in a statement.Acer said there was also an intangible asset impairment loss, which includes trademarks and goodwill, of T$$9.94 billion during the repoting period.Sixteen analysts polled by Thomson Reuters SmartEstimates had forecast a median loss of T$109 million for the quarter. ($1 = 29.4180 Taiwan dollars).

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