Taiwan-based PC manufacturer Acer will slash 300 jobs in Europe as it will produce nearly 60 per cent less tablets this year.

On Wednesday, Acer President Jim Wong said the company had hacked its full-year shipment target for tablets to around 2.5 million to 3 million units for 2011 due to weaker demand and change in the company’s strategy.

The Taiwanese manufacturer now expects to sell around 800,000 tablet computers in each of the second and third quarters of the current year.

Acer has failed to meet its last three quarterly revenue & profit predictions, but it expects the business to improve later in 2011.

Speaking on the topic, Mr. Wong said, “The third quarter will be considerably more stable. It will be similar to the second quarter or better. The fourth quarter will be even better."

The job cuts will take place in the coming few months in Europe, where the company is facing massive losses, including a $150 million writeoff for excess inventory and disputed payments in regions like Europe, Middle East and Africa.

Acer’s overall market share fell 12.9 per cent in the first quarter of this year, as year-on-year sales slipped 12.2 per cent to settle at 10.9 million units.