The Taiwanese manufacturer HTC still can not find a way to turn around its delicate situation. The company is going to lay off 1,500 workers according to Reuters, which is about 25% of its current staff.
This restructuring is carried out to reduce costs and reorganize its staff in Taiwan in the face of its new situation in the market. Gone are those years where HTC was one of the largest manufacturers of mobile phones globally.
The layoffs will be fully effective by the end of September and this move is expected to be part of a strategy to combine the mobile technology and virtual reality departments.
This movement comes at a time when the company’s revenues are at historic lows. The latest HTC U11 and U12 have not managed to convince users and sales have decreased by about 50% year after year in 2017. Some problems promoted in part by its distribution.
— Francisco Jeronimo (@fjeronimo) July 2, 2018
In September 2017, Google bought a large part of HTC’s engineering team worth 1,100 million dollars. In total 2,000 less workers for HTC, which join the 1,500 who will now lose.
6,450 workers is the current number of HTC workers, far from the slightly more than 15,000 workers who had in 2015. By the end of the year, the figure will be below 5,000.
With this restructuring HTC hopes to return to the benefits by the end of the year. We will see if their new products allow them to change the dynamics or if unfortunately for next year we will have to announce again cuts in a manufacturer of historical technology.