BenQ culls sales force, holds off mobile release

BenQ Australia has retrenched 11 employees in an attempt to cut costs after the vendor failed to launch into the mobile phone market.

In October, BenQ's global operation posted a loss of NT$12.12 billion (US$367.4 million), attributing the financial downturn to the insolvency of its mobile phone division, BenQ Mobile.

The division was created in late October 2005 when BenQ purchased mobile phone maker Siemens.

BenQ Mobile filed for bankruptcy protection in Germany after its Taiwanese parent decided to stop investing in the money-losing operation in late October 2006.

Its financial problems forced BenQ's local subsidiary to retrench the sales staff which came over from Siemens during the acquisition.

BenQ also replaced channel sales manager Simon Lui, with Ian Wang, who in 2003, resigned as MD of BenQ Australia to take up a position with the company in Taiwan.

“We had planned to bring out a range of BenQ mobile phones this month but things have changed due to BenQ Mobile becaming insolvent.

“We built an infrastructure up to take the products to market, but now that is on shaky ground,” said Phil Newton, MD at BenQ Australia.

He said that plans to bring out the range of mobile phones were being "delayed for an uncertain period of time".

Wang was working on making changes to the BenQ Authorised Program for the channel. “The changes will be announced once [they are] finalised," Newton said.