Acer CEO walks as losses mount

Acer's CEO has resigned as the hardware player continues to struggle

Acer is on the hunt for a new CEO after J.T Wang tendered his resignation after deciding that he had not been able to improve the firm's financial performance over the last couple of years.

Wang's decision came as the vendor revealed that it will be swinging the axe on 7% of its workforce as it starts a restructuring plan following disappointing third quarter numbers.

The vendor delivered a 3.1% revenue improvement in its Q3 to NT$92.15B (US$3.11B) but also delivered an operating loss of $86.6m, which it blamed largely on the repercussions of the market gearing up for the launch of Windows 8.1.

The vendor also warned that it is expecting shipments of its notebooks, tablets and Chromebooks would decrease by 10% in Q4 as a result of "adjustment on brand strategy".

“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 path the way for a new era," said Wang.

He will remain as chairman until next June and corporate president Jim Wong will take over as CEO from the start of next year but the efforts to transform the business will start immediately.

"Together with the management team, we have crafted a far-reaching plan for Acer’s transformation. I wish to thank the board members for their support and to Jim for assuming the CEO duties. I feel optimistic toward Acer’s future. The management team promises to carry out the internal restructuring and will work closely with the Board on the corporate transformation," added Wang.

The restructuring plans include a 7% workforce cut, which is expected to deliver annual savings of $100m, as well as terminating some product plans.

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