Contract PC maker Compal announces layoffs

Summary:Taiwan's Compal Electronics will cut more than 100 workers after tablet shipments for 2012 did not meet its earlier forecast.

Compal Electronics, a Taiwanese contract PC manufacturer, plans to lay off more than 100 employees due to a worse-than-expected performance in its tablet PC shipments.

In a report by the Taipei Times Wednesday, the company said the job cuts, which makes up 2 percent of its total headcount in Taiwan, will ensure its resources are used efficiently.

Compal makes Android tablets for clients such as Acer and Lenovo. As of Tuesday, the company had 5,000 employees in Taiwan, it added.

A separate report by Taiwan's Central News Agency (CNA) said Compal projected last year its tablet business would double in 2012. This resulted in recruiting additional headcount in anticipation of the spike. 

However, sales of Android tablets by its clients Acer and Lenovo did not meet expectations, prompting Compal to lower its 2012 forecast to 2 million devices--the same figure as 2011.

Compal said it plans to produce a larger share of tablets that run on Microsoft's latest Windows 8 operating system (OS) , which the latter will officially launch Oct. 26. As the variety of tablet OSes expands, Compal expects to deliver more shipments come 2013, CNA reported.

Compal is the latest Taiwanese company undergoing manpower restructuring recently. Earlier this month, DRAM (dynamic random access memory) chipmaker Nanya Technology said it will adjust 23 percent of its workforce by end-2012. Some 400 Nanya employees would be reassigned to associate companies under its parent organization, while another 200 will be laid off.

Topics: IT Employment, Tablets, Tech Industry

About

Jamie Yap covers the compelling and sometimes convoluted cross-section of IT and homo sapiens, which really refers to technology careers, startups, Internet, social media, mobile tech, and privacy stickles. She has interviewed suit-wearing C-level executives from major corporations as well as jeans-wearing entrepreneurs of startups. Prior... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.