Asustek Computer 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.

By: DocMemory
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