In a shock announcement today, 17th September 1998, Acorn announced that it would be restructuring its business once again, following the strategic review announced in the recently-published Interim Results.
Possibly the result of inadequate pre-orders for the Phoebe Risc PC 2, Acorn is "implementing a fundamental restructuring programme which will enable the Company to become more focused". The consequences of this restructuring will be the loss of 60 out of 175 jobs, the postponing of the Acorn World Show, and the cancellation of the imminent Phoebe RiscPC 2.
Stan Boland, Acorn Chief Executive, is quoted in the Cambridge Evening News as saying, "We will not be launching the next generation of our desktop RISC PC II and we will shall be postponing our show, Acorn World. There is not a big enough market for the PC, which is largely for home use and games. It's an enthusiasist's product. We are going to resize the rest of the Company and concentrate on becoming a digital TV and thin client company".
Acorn will be continuing with the sale of the current range of desktop computers, but will be transferring its logistics and systems activities to Xemplar. The large number of job cuts may reflect this as previously Xemplar used Acorn's facilities.
It would appear that RiscOS and Acorn Java will not be affected, as these are integrated into Acorn's thin client and digital TV solutions.
All is not lost, however. Chris Evans of CJE Micros has heard of two different groups interested in buying the now-abolished Acorn Workstations Division. The rumours of an internal Managment Buy-Out (mentioned in Archive's analysis of the Interim Results) appear to be fleshing out, and another company from outside Acorn appears to be seriously examining a possible purchase. Chris anticipates a 1-2 month delay in Phoebe and another show to take the place of the cancelled Acorn World.
Archive of course extends its sympathy to the Acorn staff made redundant by the shock restructuring, and hopes that they will be able to overcome this sudden and unexpected nadir.
Further news as it happens.
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