In an effort to cut costs by 35%, Taiwanese smartphone manufacturer HTC, is reportedly planning to cut its workforce by 15%. The move comes after the company saw its stock lose half its value in the last year.
The company’s stock is now at a level where its market value is lower than the money that it has in the bank, which means that the company’s brand, factories and assets are now essentially worthless.
Facing stiff competition from Apple and Samsung, as well as cheaper Chinese companies such as Xiaomi and Huawei, HTC has seen its sales fall by more than 75% since 2011.
In order to save itself, the company believes it must streamline its operations and has chosen to do a complete “realignment” of its business operations, which will mean that around 2,250 will reportedly lose their jobs.
HTC CFO, Chialin Chang said the cuts will be “across the board” and “they will be significant.”
In an announcement to HTC investors, the company’s CEO, Cher Wang, tried to paint the situation in a more positive light.
“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,” Wang said.
Wang said she also realizes that the company can not survive solely as a smartphone maker anymore.
“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,” she said.
Premium smartphones, virtual reality and connected lifestyle products will be key focuses for the company moving forward. HTC is currently working on fitness trackers and a virtual reality headset called the Vive.
For all the latest workforce moves in the industry, check out this week’s “Inside Telecom Careers.”
