Asustek Computer Inc (華碩) on Thursday denied a media report that suggested layoffs at the company were larger than it had stated.
Citing company insiders, the Chinese-language Apple Daily on Thursday reported that Asustek has halved its 600-employee PC gaming division, rather than cutting about 10 jobs.
The report also said that the company is mulling a significant downsizing and consolidation across its notebook, PC and mobile divisions, and it might shutter its manufacturing lines in China.
The downsizing could affect the company’s foray into the market for premium gaming smartphones, the Apple Daily reported.
Asustek said that it is adjusting its workforce to cope with rapidly changing market trends.
It has lowered its focus on smartphone distribution deals with US telecoms to streamline its operations, the company said, adding that the adjustments do not affect its gaming and mobile divisions.
Asustek had earlier said that it was cutting several dozen jobs in its tablet and PC divisions to direct more resources toward improving sales channels, while its human resources department had been facilitating internal transfers for affected employees.
The company’s branded sales and group consolidated sales last month fell 10 percent annually to NT$31.1 billion and NT$33.7 billion (US$1.02 billion and US$1.1 billion) respectively, which would dampen the company’s growth outlook for this quarter and the year-end peak season.
Branded sales and group consolidated sales in the first eight months also fell to NT$227.28 billion and NT$251.91 billion respectively, 8.1 percent and 8.4 percent lower than the same period last year.
The escalating US-China trade war, component launch delays and shortages, heightening PC pricing competition in Europe, the Middle East and Africa, as well as cooling demand for cryptocurrency mining video cards have pressured the company, Asustek said.
Asustek shares yesterday rose 0.57 percent to close at NT$264 in Taipei trading.
They have fallen 5.55 percent so far this year, underperforming the broader market, which is up 3.42 percent this year to date, Taiwan Stock Exchange data showed.
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