Local media is reporting that BenQ mobile division will eliminate all its engineers at its Beijing R&D Center before it closes the center due to losses in its mobile phone business.

The news has been confirmed by Zhu Yong, a representative from BenQ's PR Department, who has disclosed that about 400 employees will be involved.

Staff from BenQ Beijing tells local media that they have been notified by BenQ about the staff reduction and are discussing compensation issues with the company. BenQ will soon publish the detailed plans regarding the business adjustment and staff reduction in mainland China.

Apart from its Beijing R&D Center, 40% of the employees at BenQ Shanghai have also been reduced, while the staff at BenQ Suzhou has been transferred to work in other departments.