Acer audit prompts $150m payout, 300 jobs cut

Chairman and CEO to relinquish pay, board to take 50 per cent pay cut
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Acer will pay out $150 million to its EMEA sales channels to clear inventory, after an internal audit revealed 'abnormalities in terms of channel inventory stored in freight forwarders’ warehouses, and in the accounts receivable from channels in Spain.'

The investigation also found 'areas for vast improvement' on managing channel inventory and accounts receivable, which the firm says makes it liable for loss.

The move will result in operating loss of the same amount.

Acer simultaneously announced that it will streamline its EMEA operation by around 300 employees

It said that by doing this, it hopes to lower operating expenses 'get business back to the right track for growth.'

Chairman and CEO JT Wang will relinquish his pay for his position as director of the company board, as well as employee bonus for 2010.

The firm stated: "With Acer’s substantial loss in write-off, Wang deeply feels regretful of the current situation and will dedicate his efforts fully to investigating the reasons behind the loss and to improving internal management."

Acer's board of directors will also take a 50 per cent pay cut, and will also propose to cut employee bonuses by 40 per cent.

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