HTC announced on Thursday it will cut 15% of its workforce as the Taiwanese device maker seeks to revive its ailing fortunes.
According to its most recent annual report, HTC employed approximately 15,700 staff at the end of March, so the redundancies will be in the region of 2,350.
HTC said it aims to create a leaner, more agile company focused on premium smartphones, virtual reality, and emerging ‘connected lifestyle’ devices.
The company said it aims to reduce operating costs, which came in at NT$40.1 billion (€1.1 billion) in 2014, by 35%.
" ;This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise to win new markets," said Cher Wang, chairwoman and CEO of HTC, in a statement.
The announcement was made following a financial report last week that made for grim reading.
HTC’s second quarter revenue fell 49% year-on-year to NT$33 billion (€951.5 million), while its net loss widened to NT$8 billion (€230.7 million) from NT$2.3 billion in Q2 2014.
"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 insisted on Thursday.
"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.
