Can New Chief Jason Chen Fix Acer Amid Management Exits?

Taiwan PC maker Acer has nabbed Jason Chen, a former Intel (INTC) executive and sales boss at Taiwan Semiconductor Manufacturing (TSMC), as its new corporate president and chief executive, and confirmed three more departures from its management ranks.

With company founder Stan Shih’s return last November from a nine-year retirement, can the combination of fresh new management guided by a venerable PC icon return Acer to profitability? Or has the tablet and smartphone mobile wave irreparably overrun the vendor?

It’s interesting that Acer brought a sales and marketing specialist in to lead the company’s way back rather than an operations or organizational leader. Chen, an eight-year TSMC veteran holding positions as Corporate Development vice president and most recently as Worldwide Sales and Marketing senior vice president, is tasked with turning Acer around, leaning on what Shih described as “new thinking, international perspective and willingness to face this challenge.”

Shih said Chen shares his and the search committee’s “consensus on our strategy and development for Acer’s future.”

Chen’s appointment to Acer’s top spot comes only one month after Shin returned to steady the PC manufacturer amid a record $446 million Q3 loss and turmoil in the executive suite. Shih, who took the chairman and corporate president roles in the interim before Chen’s hiring, will retain the former title and also head what Acer is calling its Transformation Committee, which Chen additionally will join.

Acer, which still ranks among the world’s largest PC producers, has suffered badly as rivals’ tablets and smartphones continue to erode sales of its desktop and laptop staples. The vendor recently announced plans to lay off 7 percent of its workforce, or 8,000 employees, to save upwards of $100 million in 2014.

In response, Acer aggressively has moved to pare costs, most recently saying it will not replace three departing executives with new hires. The duties of CTO Arif Maskatia, and Dave Chen, its China operation’s smartphone general manager, will be absorbed elsewhere, and Walter Deppeler’s responsibilities from his former role as Acer’s global operations commercial business head will be handled by Evis Lin, an Acer associate vice president.

But is cutting costs and absorbing executive duties enough to fix Acer? Chen will have to do more to keep up with Acer’s forward-looking rivals than merely coming out with another Chromebook or more me-too tablets.

Earlier this year, the vendor said it had tabled a Windows Phone 8-based smartphone because demand was weak. Acer’s Allegro, a Windows Phone 7.5-based model, has gone nowhere.

Shih has hinted that Acer will need to plumb more markets to advance, perhaps joining the charge to emerging segments in the Far East with budget models backed by more targeted marketing. In any case, it will take more than determination to turn the company around.

Chen’s background includes 14 years at Intel in a variety of sales and marketing positions, starting as Taiwan sales manager, moving to Greater China regional sales manager, Asia Pacific vice president and general manager and, ultimately, to sales and marketing corporate vice president.

Acer’s most recent executive exits add to the resignation last month of chief executive J.T. Wang, who left in the wake of the Q3 results and was replaced by Jim Wong, a 27-year company veteran and corporate president, who subsequently changed his mind and declined to take the top slot.