Acer Announces To Write-down Charge, And Cut 300 Jobs in Europe Division

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The world’s second largest PC manufacturer, Acer Inc, has decided to take a $150 million charge for writing off inventory and doubtful payments in Europe while giving up almost 300 jobs due to the after affects of the abrupt withdrawal of its CEO in March. According to an official statement released by the company on Wednesday, Acer declared that all of its internal audits have disclosed that "abnormalities in terms of channel inventory stored in freight forwarders' warehouses, and in accounts receivable from channels in Spain."

This write-off is an additional bad news for the company after the critical withdrawal of its former CEO, Gianfranco Lanci. Acer had first cut its first-quarter PC revenue on 24^th of March, which led to a downfall of 18 percent in the stock price in four days, till the time when Lanci quit. Even before a month had passed, the company cut the second-quarters’ shipment predictions and asserted that the situation has even worsened with 64 percent of decline in the first-quarter net profit. The sales of April, 2011, steeply fell to 23 percent compared to last year.

Acer has always been very dominating in the market of the PC’s, especially the notebook department, where it is completely failing to counteract the flawless success Apple's tablet PC, iPad. Since the quitting of Lanci, the company is left in the middle of creating a rival to iPad. Laci even publicly criticized few of the decision of Acer's board, as they attempted to get a "Taiwanise" company to work for Acer.

Now Jim Wong, the President of Acer, along with the second in command J.T. Wang, the Chairman, informed that Acer is hoping to generate more revenue from its touch products and expects to revive by 15 percent till 2013 and 33 percent by 2015.

Ultrabooks is a new kind of notebooks, which will be released by the bestselling chipmaker Intel Corp., as it sees them to be overtaking almost 40 percent of the laptop sales by the end of next year. Wong said that "The ultrabook can help to revive the notebook market."

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