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HTC is cutting its workforce as revenue tanks

by Justin Herrick | July 2, 2018July 2, 2018 8:30 am PDT

With its revenue steadily declining in recent years, HTC announced it’ll let go of 1,500 jobs from the manufacturing group in Taiwan.

HTC will see nearly a quarter of its total workforce drop once these employees are gone. Globally, the Taiwanese company has around 6,450 employees.

Since there hasn’t been a financial turnaround for the company, the decision to continue reducing its workforce doesn’t come as a surprise. HTC also doesn’t need as many manufacturing-related jobs after dropping in market share.

The lineup that you see reflects HTC’s shift from dominant to defensive. HTC no longer sells multiple phones to cover every segment of the market.

Instead, it focuses on two or three products every year. But that hasn’t been a successful strategy so far. Even though it’s pouring more resources into a smaller number of products, consumers are still choosing other brands over HTC.

The deal between HTC and Google, valued at $1.1 billion, also gave up a large number of employees overseas. Based on these moves, it looks like HTC is doing everything possible to cut costs and regain balance.

HTC says the latest round of layoffs should be completed by the fall.

Reuters

Justin Herrick

Justin is easily attracted to power buttons. His interest in technology started as a child in the 1990s with the original PlayStation, and two...

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