The worldwide seventh largest notebook brand vendor Toshiba has been cutting its notebook orders recently, which is negatively impacting its largest ODM partner Pegatron Technology's notebook shipments, according to sources from the upstream supply chain.

The Pegatron team assigned to handle Toshiba's orders is expected to see some adjustment in staff, the sources said.

Pegatron's sales team has been visiting notebook brand vendors including Dell and Asustek Computer, hoping to land new orders to offset the losses from Toshiba, but has not achieved much of a success.

The sources pointed out that several notebook ODMs have already started headhunting talent from Pegatron's notebook team.

As for Toshiba, the company is gradually turning its focus to the enterprise notebook market and has also been cutting its sales staff worldwide to reduce costs, the sources said. For the future, Toshiba will mainly design and produce notebook products in-house and will reduce the number of its new notebook projects to only one third of volume in the past.

In addition, Toshiba, Fujitsu and VAIO (originally Sony's notebook department) have also been talking about merging their PC businesses and are expected to have a final negotiation at the end of March.