HTC to slash quarter of workforce - Finance - Telco/ISP

HTC is firing 25% of its staff to cut costs once again		
	Jon Russell

   	7 hours

HTC is firing 25% of its staff to cut costs once again Jon Russell @ 7 hours

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.

According to HTC, the layoffs "will allow more effective and flexible resource management going forward".

Shares in the firm plunged 6.71 percent to Tw$52.80 in Taipei and are sharply down from a high of Tw$1,300 in 2011 as its share of the global smartphone market has been worn away.

A HTC "U11" smartphone is displayed in this illustration photo taken August 1, 2017.

It's important to note that the 1500 affected staff are not from team that went over to Google to work on the latter's Pixel smartphones, as part of the US$1.1 billion (~RM4.05 billion) deal that the two companies agreed to a year ago. While this did put some much-needed money into its coffers, the deal saw 2000 handset engineers become Google employees, and it included a "non-exclusive license for HTC intellectual property". In 2015, the company cut more than 2,000 jobs, slashing its workforce by 15 percent after posting its then biggest ever quarterly loss of Tw$8.0 billion. "They are not a significant contender within the smartphone space", said Tuong Nguyen, a Gartner analyst. HTC was once the name behind one in ten smartphones in the market, however, due to huge competition from other smartphone makers like Apple, Samsung and Chinese smartphone giants, the company has seen a massive decline in market share and sales.

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