Rumors that surround ASUS indicate they are looking to lay off a large number of employees as part of its business reorganization. The company noted that it is currently in the process of reorganization, but stressed it has so far not conducted any action in terms of laying off staff. 

Asustek declined to make any further clarification about the rumors, reports digitimes. Although Asustek claims it has not yet looked towards layoffs, market watchers believe axing staff is most likely inevitable as Asustek has been cutting and integrating its excessive product lines, and therefore will not have as many positions open as previously.

Asustek recently stepped away from the consumer desktop and smartwatch businesses and is also seeing Micro-Star International (MSI) quickly catch up in the gaming market.

Asustek expects the second quarter to mark the bottom of its 2017 operations, with both revenues and profitability dropping dramatically. However, some market watchers expect Asustek's third-quarter revenues to grow at least 20% sequentially thanks to new notebook products and ZenFone 4-series smartphones.

Asustek reportedly to start wave of layoffs