TAIPEI (Reuters) – Smartphone maker HTC plans to slash round 1 / 4 of its international workforce by job cuts at its manufacturing unit in Taiwan, in a bid to higher handle assets as the corporate continues to battle dwindling gross sales.
The job cuts point out contemporary hiccups for the struggling Taiwanese cell phone maker that when offered one in 10 smartphones globally, however has seen its market share decline amid mounting competitors from Apple, Samsung Electronics Co and Chinese language rivals.
HTC mentioned it will reduce 1,500 jobs in its manufacturing unit in Taiwan. This represents a few quarter of the 6,450 workers it employed globally as of June, information from the corporate reveals.
“At present HTC pronounces plan toust optimize the manufacturing organizations in Taiwan … This plan will enable simpler and versatile useful resource administration going ahead,” HTC mentioned.
The layoffs will likely be accomplished by the tip of September. The transfer can also be a part of a broader plan that brings HTC’s smartphone and VR companies underneath frequent management in every area.
This follows a $1.1 billion deal late final yr underneath which HTC shifted round 2,000 workers, primarily handset engineers, to Alphabet’s Google, casting doubts over the Taiwanese agency’s longer-term future.
HTC’s cutting down comes amid a decline in its revenues and gross sales. The corporate reported a 55.5 p.c plunge in April revenues year-on-year and a 46.7 p.c slide in March gross sales.
Reporting by Jess Macy Yu and Hong Kong slot group; Modifying by Sayatani Ghosh and Himani Sarkar