Taiwan’s smartphone brand, HTC says it will slash 1,500 jobs, a fifth of its workforce.
The company broke the news on Tuesday, describing the cuts — which will be implemented by the end of September — as “a decisive step in the realignment of resources across the organisation” that would allow “more flexible operations management”.
HTC is known to be one of most competitive in the smartphone sector, but has been battling with in stiff competition from Apple and Samsung as well as strong Asian mobile phone brand, Huawei.
This cut in workforce comes despite signing a new deal with Google in January, which saw a boost in HTC’s first quarter performance after a dismal 2017.
It incurred a net loss of Tw$16.91 billion in 2017 and a loss per share of Tw$20.58, the highest since it listed on the Taiwan Stock Exchange in March 2002.
Losses of Tw$9.8 billion in the last three months of 2017 represented its worst-ever quarterly results. In 2015, the company cut more than 2,000 jobs, slashing its workforce by 15 per cent after posting its then biggest ever quarterly loss of Tw$8.0 billion.
HTC says it wants to better coordinate its smartphone and virtual reality businesses,
It is among major tech firms including Facebook and Samsung to venture into virtual reality and released its first VR headset Vive in 2016, but analysts have been sceptical about the earning potential of its investments in virtual reality and other emerging areas.