(The Hosting News) – Earlier today, Acer CEO and Chairman J.T. Wang announced his resignation from the company following the release of its third quarterly earnings – results that showed a shocking $13.1 billion loss.
From Acer’s press release, Wang stated, “Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to path the way for a new era.”
Acer’s Transformation Advisory Committee intends to bring changes by transforming the company’s strategy and vision. Board member Stan Shih explained further by stating, “After making structural adjustments, we will introduce more competitive products within the existing PC, tablet, and smartphone business and stabilize our market share. This will be the basis of our transformation and for developing new business opportunities.”
Wang will finish out his tenure as Chairman ending June 2014. Meanwhile, President Jim Wong is set to kick off the new year as CEO on January 1, 2014.
In addition to announcing Wang’s departure and hinting at new products, Acer also is restructuring its employee base. The company will cut 7% of its workforce in a bid to save $100M annually for next year.
Acer’s revenue loss is likely a result of increasing competition in the tablet market. On Tuesday, a report from Bloomberg Businessweek pointed out that the introduction of Apple’s iPad had hurt sales for Acer’s once popular Netbook line.
The company has also faced rising competition from Chinese-based competitor Lenovo who continues its dominance in a struggling PC market.