Acer computer said on February 6, 2001, it will lay off as many as 500 foreign workers from its plant in the Hsinchu Science-based Industrial Park as it strives to beef up its bottom line. The job cuts, along with an earlier layoff announcement to Acer's overseas branches, have caused around 2,000 job losses so far.

 Meanwhile, Acer announced that of its affiliates and holding companies, including Ligitek Electronics will be liquidated soon as part of a broader cost-cutting plan.

 According to Acer, the cuts in personnel are necessary for the company to reduce operational costs and consolidate manufacturing structure as Acer's PC assembly house in Hsinchu has been struggling recently in the face of weaker demand and reduced profits. In January, the company's sales revenue slumped to NT$5 billion, the lowest in three and a half years.

 Currently, Acer has about 7,000 employees in Taiwan. To save itself from lowering its financial targets, the company has already sacked 1,500 employees from its overseas branches. With February 6, 2001 layoff annoncement, Acer's streamlining plan has targeted roughly a quarter of its total work force.

 In addition to job reduction, Acer will embark on corporate restructuring by liquidating some of its subsidary companies to meet its cost-reduction needs.
 
 

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