14 DAY TRIAL // According to recent reports, ASUSTeK is still hurting from the effects of the low global economy, as the Taiwanese company is preparing to let some of its employees go, in an attempt to reduce costs and save profits. ASUS is reportedly planning to let up to 500 of its workers go, a move that is scheduled to be completed before the end of July. These employees are part of the optical drive as well as the R&D departments.
In a recent news-article on Digitimes, ASUS is said to be planning to cut its workforce by 500 employees, which will gradually be let go before the end of July. This number has been considered before, as the company was planning on reducing its headcount in April. However, during June and July, ASUS will end its collaboration with these 500 employees, which are currently working in the company's optical drive department, but also in the R&D department, for Eee PCs, motherboards and notebooks.
With the reported reduction of its workforce, ASUS is said to be planning a simplification of the aforementioned product lines, although no specific details have been made available so far. The notebook and Eee PC business segments have been among the most successful for ASUS in the past year, but the company appears to be looking for solutions to increase profits during a harsh market environment.
Digitimes also reports that the manufacturer's revenues in May are expected to be down by approximately 10%, compared to the month before. In addition, the company isn't expected to turn profitable until the third quarter of this year, at best.
ASUS is one of the main companies responsible for the vast market success of the netbook segment, which is currently the fastest growing in the market. However, since the release of the first netbook system, the number of competitors has increased significantly, forcing ASUS to look for better ways to make its lineup more interesting to the general public.