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HTC lays off almost a quarter of its entire workforce

03 July 2018
HTC lays off almost a quarter of its entire workforce

The announcement echoed a strategic plan released by HTC earlier this year that was focused on streamlining its organization worldwide.

But, thanks to ramped up competition from other smartphone makers like Apple and Samsung, the company has now found themselves struggling as revenue and sales continue in a downward spiral.

None of the people who moved to Google will be affected by the action, while some foreign workers in its manufacturing business will receive compensation, HTC told investors in a prepared statement.

In 2017, HTC incurred a net loss of NT$16.91 billion and a loss per share of NT$20.58, the highest since it listed on the Taiwan Stock Exchange in March 2002.

Hence, it should come as no big surprise that the Taiwanese maker of mobile handsets and VR headsets is now looking to lay off a whopping 1,500 employees in a last-ditch effort to "more effectively and flexibly" manage resources going forward. The layoffs should be completed by the end of September 2018.

As part of the second stage of its global manufacturing optimization strategy, HTC submitted a large number of dismissal notices to the Labor Bureau of Taoyuan City Government on Monday. But while analysts said the Google agreement would mean some immediate benefits for HTC, such as more capital and cost reductions, they predicted a turnaround in its fortunes was unlikely. These layoffs are in addition to to earlier layoffs at the company's US offices as part of part of a restructuring that combined its smartphone and VR divisions.