Acer CEO resigns following $446 million loss

J.T. Wang will be succeeded by corporate president Jim Wong
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The chairman and CEO of Acer has resigned, following “poor financial results”.

J.T. Wang’s step down from the position was announced by Acer in a press release, which also stated that current corporate president Jim Wong will take up the position from January 1st 2014.

“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.

Acer had previously revealed that the company had suffered a $446 million (£277.24 million) loss during Q3 2013, which followed a loss of $11.4 million (£7.09 million) in Q2.

Acer’s board of directors released a statement following the news, saying that “in the interest of ensuring company stability and a smooth transition during this latest restructuring and transformation” they had asked Wang “to remain to complete his tenure as Chairman which ends in June 2014”.

“The past two to three years have been extremely tough for Acer due to the rapidly changing industry and market conditions,” the board added.

In the same statement, the board was confirmed to have “approved the issue of 136 million new common shares for a capital increase in cash (approximately 4.8 per cent of total shares)”.

Other plans revealed by the company include “include reducing manpower, product plan termination with related product tooling and legal fees, resulting in a one-time cost of $150 million (£93.24 million) which is expected to be reported in the Q4’13 financial results. Acer will cut its worldwide employees by seven per cent resulting in OPEX savings of $100 million (£62.17 million) annually from 2014.”

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