HTC to cut-off 1,500 jobs amid losses
HTC, a smartphone maker company plans to cut off its 1500 jobs at its manufacturing unit in Taiwan which is around a quarter of its global workforce.
Taiwanese smartphone maker continues to battle dwindling sales which brings the job cut.
“Today HTC announces the plan to optimize the manufacturing organizations in Taiwan. This plan will allow more effective and flexible resource management going forward.” Said the company in a statement.
The job cuts depict the losses continuing of the struggle of Taiwanese mobile phone maker that once sold one in 10 smartphones globally, but now due to amid mounting competition from Apple, Samsung, and Chinese rivals its market shares are declining.
The cutting of 1500 jobs in the manufacturing unit depicts about a quarter of the 6,450 staff it employed globally as of June employee data from the company and by the end of September, the layoffs will be completed.
Despite a new $1.1 Bn deal with Google last year, the news of the cutoffs was announced. This deal with Google boosted HTC's first quarter performance after a dismal 2017. HTC shifted around 2,000 staff, mainly handset engineers, to Alphabet’s Google under the deal, raising apprehensions about its long-term future.
HTC faces a decline in market share due to decline in its revenue and sales. The company stated a 55.5 percent drop in April revenues year-on-year and a 46.7 percent slide in sales during March.
The company slashed more than 2,000 jobs in 2015, cutting its workforce by 15 percent after posting its then-biggest ever quarterly loss of TWD $8.0 Bn. It even suffered a net loss of TWD $16.91 Bn in 2017.
