The cuts are part of a wider global cost cutting exercise that the Taiwanese manufacturer said will see it reduce operating expenditure by 35 per cent. HTC, meanwhile, will be cutting more than 2,000 jobs, which eliminates about 15 percent of its workforce.
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Cher Wang, chairman and CEO of HTC, said: “The operation plan will define a specific goal of each business units with appropriate resources and expertise, to win over new market”.
“Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all the exciting opportunities in the connected lifestyle space”, she said in the statement. HTC has a fitness tracker called the Grip and recently launched earphones, but has struggled with the launch of its M9 One smarpthone.
Lenovo Group and HTC Corporation have announced major job cuts as their earnings reports of the recent quarter highlighted that their EPS have gone down sharply. After the company’s market cap dropped below its cash on hand, marking it effectively worthless in the eyes of investors, the company announced the scope of its long awaited job cuts today. Is it just another example of a small company finding it hard to compete against the ever-increasing smartphone vendors or was HTC’s demise because of poor management and their refusal to embrace changes in the market. The warning signs have been there for a long time and you have to question whether HTC has a viable future in smartphones.
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Although Apple increased by 2.4 percent in worldwide shipments during the second quarter, Samsung suffered a year-over-year decline with its market share falling 3.1 percent.
