TAIPEI, TAIWAN – Asustek Computer Inc. has plans to layoff 5% of its total workforce, according to market insiders. Forecasted drops in annual profits and unrealized notebook and motherboard shipment goals have been blamed for the reduction, expected to affect nearly 200 employees.
 
Despite a growth of over 20% in revenues, profits will drop 10% to 20% on the year due to low gross margins for notebooks, netbooks and motherboards. In addition to the workforce reduction, the company plans to adjust its inventory control and channel operation.

Asustek is not the only one feeling the strain of an unstable global economy. Micro-Star International, Gigabyte Technology and Elitegroup Computer System have announced plans to reduce their staffs by an average of 3% each.

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