HTC to slash 1,500 jobs in Taiwan

Published: July 02, 2018 17:23:32 | Updated: July 05, 2018 14:25:45

Smartphone maker HTC plans to slash around a quarter of its global workforce through job cuts at its manufacturing unit in Taiwan.

The electronics company is planning the job cuts in a bid to better manage resources as the company continues to battle dwindling sales, reports Reuters.

The job cuts indicate fresh hiccups for the struggling Taiwanese mobile phone maker that once sold one in 10 smartphones globally, but has seen its market share decline amid mounting competition from Apple, Samsung Electronics Co  and Chinese rivals.

HTC said it would cut 1,500 jobs in its manufacturing unit in Taiwan. This represents about a quarter of the 6,450 staff it employed globally as of June, data from the company shows.

 “This plan will allow more effective and flexible resource management going forward,” HTC said.

The layoffs will be completed by the end of September.

The move is also part of a broader plan that brings HTC’s smartphone and VR businesses under common leadership in each region.

This follows a $1.1 billion deal late last year under which HTC shifted around 2,000 staff, mainly handset engineers, to Alphabet’s Google, casting doubts over the Taiwanese firm’s longer-term future.

HTC’s scaling down comes amid a decline in its revenues and sales.

The company reported a 55.5 per cent plunge in April revenues year-on-year and a 46.7 per cent slide in March sales.

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