Acer shares tumble by daily limit after CEO resigns, job cuts
TAIPEI (Reuters) - Shares of Acer Inc fell by their daily limit on Wednesday after the company announced a restructuring plan with a new chief executive and a 7 percent reduction of its workforce after a worse-than-expected quarterly loss.
Acer shares opened down 6.9 percent, the maximum allowed in a session, at T$16.9, in a broader market that was up 0.2 percent.
Citi cut Acer's target price to T$13 after the announcement, saying the restructuring efforts could not change the PC company's outlook structurally, but reducing operating expenses through headcount reduction could buy time for management to reposition its business model.
(Reporting by Clare Jim; Editing by Chris Gallagher)
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