Taiwan based computer maker Acer has decided to drop its tablet sale forecasts by as much as sixty percent due to low demand and has decided to cut nearly 300 jobs in Europe.
While the slow economic recovery in Europe has been cited as the reason for the reduction in its forecasts, the company does hope to make a recovery in the notebook market where it has traditionally held a strong position.
Acer is also looking to make it through a tough period with a host of measures that include cutting staff bonuses by nearly forty percent and realigning its divisions.
The company incidentally has huge inventory stockpile in Europe which it is attempting to clear. The planned layoffs are expected to be completed in coming few months.
"The third quarter will be considerably stable. It will be similar to the second quarter or better" and he went on to add "The fourth quarter will be even better," said Acer chairman JT Wang, Reuters reports.
Analysts do not seem to share his optimism, and there has been a thirty percent fall in the company’s share value since the end of March as well as a 29 percent drop in sales during the last month, both indicators of a slump that looks like it is nowhere near abating.