Asustek is expecting a profit decline of 10 to 20 percent in 2008 due to missed projections and excess inventory.
According to several reports, Asus subsidiary Pegatron Technology will reduce its workforce in China by half, and around 45,000 workers will be affected.
Asustek is estimating it will generate $657 to $737 million in profit this year, down significantly from just over $900 million last year. This is the first time Asustek reported a decline in profit since 2002.
Following dismal results, the company has reduced its notebooks shipment goal by one million units, and expects a drop of 11 percent in graphics card shipments.