HTC announced today it would be axing 2,250 jobs, or 15 per cent of its workforce, after disappointing investors with yet another batch of sub-par results.
The struggling Taiwanese smartphone maker’s sales missed expectations in the second quarter, and are forecast to drop further still in the months to come. Last week's earnings report reported revenue of NT$33bn (£660m) and a quarterly loss of NT$8bn.
Once one of the world’s biggest smartphone manufacturers with 10 per cent of the global market, HTC has seen former customers move relentlessly toward giants Apple and Samsung. Today, its market share has dwindled to less than a fifth of what it was, and the company is trying to combat this by breaking into new markets, such as gaming headsets.
Cher Wang, the company’s chief executive, said:
Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all of the exciting opportunities in the connected lifestyle space.
HTC expects that the job cuts will reduce operating costs by 35 per cent.