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.