Acer makes 7% job cuts and appoints new CEO as firm continues to post losses

Taiwan based tech firm Acer has announced the arrival of a new CEO, along with a restructuring plan that will see seven per cent job cuts, following a worse than expected third quarter net loss in of T$13.12 billion (£280 million).

Acer is the world's fourth largest PC and laptop maker by shipments but is suffering from the global shift to mobile devices, having posted losses in five of the last quarters since 2011.

Despite being the world's fifth largest producer of tablets, with its tablet sales growing, the firm holds just a 2.5 per cent market share, having shipped 1.2 million devices in the last quarter.

Acer's corporate President Jim Wong will take over from J.T. Wang as CEO, while Wang will hold onto the chairman position until June.

"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," Wang said in a statement.

The firm said that reducing its 8,000 strong worldwide workforce by seven per cent, will save around $100 million a year from 2014.

Furthermore, it plans to raise an extra T$2.87 billion by issuing 136 million new common shares priced at T$21 per share. This will support restructuring plans, which are expected cost $150 million and be booked in the fourth quarter.

Acer has particularly suffered from a drop in demand for laptops worldwide, as tablets become increasingly popular. Global laptop sales dropped by 9.5 per cent in Q3 2013, research firm IDC reports.

"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.

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