Asus, a prominent name in the world of PCs and smartphones, has raised eyebrows with its unexpected organizational restructuring. Despite promising no job cuts, the company has proceeded to reduce its workforce in different departments. This has led to confusion and speculation about the company’s strategic motives, its consequences for employees, and its trajectory. The report also states that the Taiwanese company has decided to axe its Zenfone series of smartphones.
Asus’ organizational restructuring results in layoffs
In June, Asus released an internal letter to its employees announcing an upcoming organizational restructuring. Despite assuring its employees that there would be no job loss, it reportedly reduced its workforce in the PC department in July. This affected employees in both Taiwan and Suzhou, China. However, the company’s downsizing efforts have not ceased with this move.
Recently, an individual with knowledge of the situation revealed that several units within the commercial department were informed that a significant reduction would occur, affecting teams such as engineers and procurement, resulting in a 50% workforce reduction.
Initially, Asus had communicated plans for the commercial computer team to transition to the mobile phone product department. Nonetheless, individuals familiar with the matter highlighted that some employees who had recently been integrated into the mobile phone unit were still subjected to layoffs.
The company had indicated that it would attempt to internally place affected employees in vacant positions. However, the report states that the HR department is not actively pursuing this and instead expects employees to find suitable internal openings on their own.
The reasons behind the layoff of employees who were integrated into the mobile phone unit only to be later laid off were also brought to light by an insider. As it is known, Asus’ mobile phones are categorized into the ROG and Zenfone series. However, the latest Zenfone 10 model is projected to be the last generation in this series. Consequently, the Zenfone team will either be integrated into other departments or directly merged into the ROG team in the future. It is expected that the current round of layoffs in Asus’ commercial department will continue until next month.
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