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With Asustek Computer unlikely to meet its original annual shipments goal for both notebooks and motherboards, while annual profits in 2008 are also likely to drop compared to 2007, the company is planning to layoff 5% of its total workforce, equal to around 200 staff, according to industry sources. Although Asustek's revenues in 2008 will see a growth of over 20%, low gross margins for notebooks, netbooks and motherboards will cause the company's profits to drop 10-20% on year to NT$22-24.7 billion (US$654.96-735.34 million), noted the sources.
Asustek commented that its is evaluating a "small" workforce reduction. In addition, the company said it will also adjust its inventory control and channel operation.
As for the first quarter of 2009, Asustek said it expects revenues performance to hit bottom in January and February.
In related news, Micro-Star International (MSI), Gigabyte Technology and Elitegroup Computer System (ECS) are also said to be planning to cut staff by an average of 3% each.
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