Hundreds of workers under the employ of HTC are set to be sent home as the company suffers dwindling revenue.
As revenue continues to dwindle and in a desperate effort for survival, struggling Taiwan based smartphone makers HTC has announced plans to slash 1500 staff members of their global workforce. The fortunes of HTC has no doubt nosedived drastically in recent years.
This indicate that the floor is about to cave-in for the struggling Taiwanese mobile phone maker that once sold one in 10 smartphones globally, but has seen its market share decline amid mounting competition from Apple, Samsung, LG and Chinese rivals.
HTC said it would cut 1,500 jobs in its manufacturing unit in Taiwan. This represents about a quarter of the 6,450 staff it employed globally as of June, data from the company shows.
“Today HTC announces plan to optimize the manufacturing organizations in Taiwan. This plan will allow more effective and flexible resource management going forward,” the company says in a statement made available to Reuters.
This massive layoffs follows a $1.1 billion deal late last year under which HTC lost 2,000 staff, mainly handset engineers, to Alphabet’s Google, casting doubts over the company’s longer-term future. Recall that HTC’s president Chialin Chang resigned in February this year following numerous challenges facing the company. I wonder what went wrong with HTC considering the fact that they made some of the best smartphones few years ago.
For a company who has over 19000 staff in 2013, now they'll be less than 5000. My advice for those that would not be affected by the mass sack is to quietly start dusting up their CVs because they might be needing it soon.