The layoffs have come after HTC shifted around 2,000 employees to Alphabet’s Google in 2017 as part of a US$ 1.1 billion deal over HTC’s unstable future
Taiwanese smartphone giant HTC has planned to slash around 22 per cent of its workforces through job cuts in order to offset the loss of revenues and sales and manage its resources in a better and more effective way.
A total of 1,500 jobs will be cut by September end
There are a total of 6,450 staff that HTC had employed globally as of June 2018 data and the slash of workforces would mean the company will cut 1,500 jobs in its manufacturing unit in Taiwan. “Today HTC announces plan toust optimise the manufacturing organisations in Taiwan … This plan will allow more effective and flexible resource management going forward,” an official statement from HTC stated.
These job cuts enhance the persistent drop in revenues and sales that the company has been facing ever since the smartphone market saw the entry of Apple, Samsung Electronics and other Chinese rivals. HTC once used to sell one in 10 smartphones globally.
Layoffs come after constant loss in revenues and sales
The job cuts will be finished by the end of September and the move is also seen as a broader plan to bring the smartphone and virtual reality (VR) businesses of HTC under a common leadership in every area. Additionally, these layoffs have come after a US$ 1.1 billion deal in the end of 2017 wherein HTC had shifted around 2,000 employees, primarily handset engineers, to Alphabet’s Google – citing doubts over the company’s long-term and a stable future.
The Taiwanese company has reportedly seen a 55.5 per cent plunge in revenues year-on-year (YoY) in April and a 46.7 per cent slide in its March sales.