Acer CEO resigns amid Q3 loss of $446 million

acer C720 angle

It’s a rough day for Acer, as the Taiwanese company announced a worse-than-expected Q3 loss of NT$13.2 billion, or roughly $446 million. As a result, company CEO JT Wang has resigned.

“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 an official statement.

But waiting for Windows 8.1 to gain steam won’t perfectly solve Acer’s growing problem: PC sales for the manufacturer dropped by nearly 35 percent in Q3, continuing a freefall that the company has seen all year. The company posted surprising Q2 losses in August, with a loss of NT$343 million, or $11.4 million, after many forecast a profit. The losses have been a longterm effect of PC sales, which narrowed the company’s revenue and has left it without many options.

In addition to Wang’s departure from his position, Acer plans on shrinking its global staff by 7 percent in an effort to cut operating costs by $100 million. An addition, Acer president Jim Wong will take over as CEO in January, and both will participate in the company’s “Transformation Advisory Committee”.

“The committee will propose changes in the company vision, strategy, and execution plans for the Board’s approval,” the company said in a statement “They will work with the management team to carry out the transformation to increase shareholder value.”

In addition to cutting costs, there needs to be a boost in sales. The company will have to win big on its $249 Acer 720 Chromebook, which has some of the strongest performance specs currently available in the sub-$300 Chromebook market, and produce more appealing high-end products (including tablets) to curtail the drastic losses the company has endured. It’s a tall order, especially for a market that has dwindled as quickly as the PC computer.

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