HTC to lay off 1500 employees from Taiwanese factories
03 Julio, 2018, 09:54 | Author: Misty Newman
The job cuts are the latest sign that HTC, once a major player in the smartphone market, is struggling to keep afloat in a competitive industry.
After offloading 2,000 engineers to Google as part of a $1.1 billion deal with the search giant, HTC is now laying off 1,500 staff, or almost one-quarter of its total headcount, to cut more costs. The layoffs are expected to be completed by the end of September.
After the president of HTC's mobile division resigned earlier this year, the company combined its virtual reality and mobile divisions into one.
Smartphone maker HTC plans to slash around a quarter of its global workforce through job cuts at its manufacturing unit in Taiwan, in a bid to better manage resources as the company continues to battle dwindling sales.
Under the deal, half of HTC's smartphone research and development team - about 2,000 people - would go to Google.
The official statement by HTC said "Today HTCannounces a plan to optimise the manufacturing organisations in Taiwan ..." The layoffs are reportedly part of HTC's "strategic adjustment of its workforce".
It incurred a net loss of Tw$16.91 billion (US$554 million) in 2017 and a loss per share of Tw$20.58, the highest since it listed on the Taiwan Stock Exchange in March 2002.
Under the US$1.1 billion deal with Google, the USA tech giant took on half of HTC's research and development staff - about 2,000 people.
Smartphone manufacturer HTC will slash nearly a quarter of its employees in an effort to become profitable.
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