More bad news for HTC: Chief Operating Officer Matthew Costello has resigned from the struggling company, which has faced shipping delays, declining profits and the exodus of members of its executive staff. Costello worked for the Taiwanese smartphone maker for less than three years, and in his time there watched the company shares drop 76 percent.
President of engineering and operations Fred Liu has reportedly taken on Costello’s responsibilities for the time being, expanding his role at HTC to cover services, operations, sales and quality. In an email obtained by Bloomberg and confirmed by HTC, Liu announced the news to employees and explained that Costello will move to Europe and will stay on as a adviser to the company.
While its latest flagship phone, the HTC One, earned rave reviews, shipping delays combined with marketing issues and the loss of at least four senior executives in the past two years likely contributed to a 98 percent drop in net income during the last fiscal quarter. Flops, such as the HTC First on AT&T, certainly aren’t helping the company’s fortunes.
TechnoBuffalo reached out to HTC for an official comment on the recent departure, but a spokesperson was not immediately available.
Update: HTC’s official statement is as follows: “To achieve success, we’ve had to change when it was right for the business. Recently was one of those times. We took control of our business, narrowed our focus, and launched our new HTC One. Actions to streamline our business resulted in some reorganization and executive departures, but initial sales of the One have validated our approach. Response for our flagship device has been strong and demand has exceeded our expectations. We are confident that the business steps we have taken and continue to take are the right ones to lead to a strong resurgence of the HTC brand.”