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Acer to cut 500 staff this week

Foreign workers in Taiwan given the boot

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Acer Inc is to cut 500 staff in Taiwan by the end of the week, the company said today.

The layoffs, representing around five per cent of the company's workforce worldwide, will affect foreign workers at its Hsinchu industrial park, according to Dow Jones.

Acer, which currently has around 6,000 staff in Taiwan, said many of the workers' contracts were due to run out and it had decided not to renew them. Those affected work in Acer's PC manufacturing and assembly business.

The company wants to move some of its manufacturing to China and the Philippines.

The move, unfortunate considering Acer's slogan of "It's not about technology, it's about people", emblazoned on its site today, comes amid a major rejig at the company. In November it cut revenue forecasts for the year by $620 million to $2.5 billion, and a month later revealed plans to shut half its 30 factories worldwide to save cash. It also said it would split its own-brand PCs from its contract orders business. ®

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