HTC confirms 15% job cuts in “business realignment”

HTC confirms 15% job cuts in “business realignment”

13 AUG 2015

HTC said it expects to cut 15 per cent of its staff, as part of a plan to enable “significant profitable growth with a leaner and more agile operating model”.

The company is looking to reduce its operating expenditure by 35 per cent, in order to get back into the black after several periods of losses.

In a statement, it said it will establish new business units “to create greater focus and profitable growth in our key areas of premium smartphones, virtual reality and connected lifestyle products”.

Cher Wang, chairwoman and CEO, said: “HTC is an inspirational company driven by innovative people, with a unique blend of expertise in hardware and software integration, advanced technology and world-class design. Now, as we diversify beyond smartphones, we need a flexible and dynamic organisation to ensure we can take advantage of all of the exciting opportunities in the connected lifestyle space.”

HTC is forecasting a loss for the current quarter, with its revenue dropping sharply both year-on-year and quarter-on-quarter. By trimming its expenses, it will be better positioned to return to profitability moving forward.

But the company still faces challenges in that while its core smartphone unit is pressured, there is little evidence that its product diversification will reap rewards – certainly in the short term. In a recent conference call Chialin Chang, CFO, said that contribution from these activities will start in 2016.

And while the company has identified “premium smartphones” as a key focus area, this market is seeing tough competition, with even Samsung struggling following the launch of its latest flagship.

Author

Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

Read more

Related

Tags