Acer to Dismiss 10% of Employees in China

Taipei, March 28, 2011 (CENS)--To enhance operating efficiency of its PC business unit in China, the Taiwan-based Acer Inc., one of the world's top three PC vendors now, is going to cut 10% of employees in the country, according to the firm.

Acer acquired the PC business unit from China's Founder Technology Group for NT$120 million last August as a strategic move to penetrate the Chinese market. The strategy has worked, as the Taiwanese firm effectively pushed up its share to 8.6% to rank as the second-largest brand by overall PC sales in the market in the fourth quarter of 2010, only next to Lenovo. During the same period, the firm also ranked No.3 in terms of notebook PC sales.

To boost its profits earned in the market, the firm has confirmed that 10% of its employees in Acer China will be dismissed this year. In other words, based on Acer China's current worker number of over 1,000, the firm will lay off around 100 workers to enhance operating efficiency of the subsidiary. The firm has stressed that laid-off workers will be given full compensations required by China's labor law.

Increasingly focused in the China's PC market, the firm aims to score sales revenue of US$2.5 billion there, and drive up its market share to 13-15% this year from 10% posted last year.

Rankings of Top 5 PC Brands in China in Q4, 2010
Ranking	Brand	Market Share
1	Lenovo	30.1%
2	Acer	8.6%
3	Dell	7.2%
4	HP	7.2%
5	Asus	5.2%

Source: Gartner