News
 International
 National
 Embassy News
 Arts & Living
 Business
 Travel & Hotel
 Medical Tourism New
 Taekwondo
 Media
 Letters to Editor
 Photo Gallery
 Cartoons/Comics/Humor
 News Media Link
 TV Schedule Link
 News English
 Life
 Hospitals & Clinics
 Flea Market
 Moving & Packaging
 Religious Service
 Korean Classes
 Korean Weather
 Housing
 Real Estate
 Home Stay
 Room Mate
 Job
 English Teaching
 Translation/Writing
 Job Offered/Wanted
 Business
 Hotel Lounge
 Foreign Exchanges
 Korean Stock
 Business Center
 PR & Ads
 Entertainment
 Arts & Performances
 Restaurants & Bars
 Tour & Travel
 Shopping Guide
 Community
 Foreign Missions
 Community Groups
 PenPal/Friendship
 Volunteers
 Foreign Workers
 Useful Services
 ST Banner Exchange
  Business
Acer to Axe 10% of Its Workforce in China
Acer plans to lay off nearly 100 employees, or 10 percent of its workforce in China, according to Chinese media reports.

The move comes more than six months after Acer merged with Chinese PC maker Founder, where most of the employment cuts will be made.

Acer confirmed the layoff plan on March 23, saying that the company is making the adjustment to avoid a waste of manpower caused by overlapping businesses.

Acer Chairman J.T. Wang said that he had consulted with 80 percent of the employees being laid off, adding that the move was to support the optimum use of the organization's resources and avoid waste.

Acer acquired Founder's PC-related business for 120 million Chinese yuan (US$18.27 million) to boost its presence in China in August last year. It also paid US$67.5 million for the right to use Founder's PC-related trademarks, intellectual property rights and other intangible assets for seven years.

Under the deal, nearly 700 Founder employees joined Acer China. If the original 200 Acer China employees are added, the total number of the company's employees in China, the total number of staff before the cuts numbered in the region of 1,000.

Most of the employees being laid off belong to the customer support, purchasing, logistics, planning and marketing departments.

Acer said that the company had devised a favorable severance package that would offer laid-off employees a severance pay higher than what is legally required and give them support to find other jobs.

Sources familiar with the matter said that the employee cutbacks are aimed at increasing business efficiency.

Acer has been aggressively developing its Chinese market: it has set a goal of earning US$2.5 billion in annual revenue from China this year, up from last year's US$1.5 billion. If that goal is met, China would become the company's fastest-growing business market.

Acer CEO Gianfranco Lanci said that last year, the Chinese market accounted for merely 7 percent of Acer's overall revenue. He said that the company aimed to increase the Chinese market's share to 20 percent of total revenue by 2013.

According to American technology market research institute Gartner, after Acer's acquisition of Founder's PC-related business, Acer's market share in China in the fourth quarter of last year hit a record high of 8.6 percent, making it the second-largest PC supplier in the country. In addition, the market share of its mobile PCs and notebooks reached 10.2 percent.




 

back

 

 

 

The Seoul Times Shinheungro 25-gil 2-6 Yongsan-gu, Seoul, Korea 04337 (ZC)
Office: 82-10-6606-6188 Email:seoultimes@gmail.com
Copyrights 2000 The Seoul Times Company  ST Banner Exchange