HTC to Slash 1,500 Jobs for 'More Effective and Flexible Resource Management

HTC to Slash 1,500 Jobs for 'More Effective and Flexible Resource Management

HTC smartphone maker plans to cut about a quarter of its global workforce through job cuts at its manufacturing unit in Taiwan, in an attempt to better manage resources as the company continues to fight the dwindling sales

The job cuts indicate new drawbacks for the Taiwanese mobile phone maker that once sold one in 10 smartphones around the world, but has seen its market share fall amid growing competition from Apple, Samsung Electronics Co and your Chinese rivals.

HTC said it would cut 1,500 jobs at its manufacturing unit in Taiwan. This represents about a quarter of the 6,450 employees hired globally as of June, according to company data.

"Today HTC announces a plan to optimize manufacturing organizations in Taiwan ... This plan will allow for more efficient and flexible resource management in the future," said HTC.

The dismissals will be completed by the end of September. The move is also part of a broader plan that brings HTC's smart phone and virtual reality businesses to common leadership in each region.

This follows a $ 1.1 billion agreement at the end of last year, according to which HTC moved approximately 2,000 employees, mainly device engineers, to Google's Alphabet, which casts doubt on the long-term future of the Taiwanese company .

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The reduction of HTC occurs in the midst of a decrease in revenues and sales. The company reported a 55.5 percent drop in April revenue from one year to another and a 46.7 percent drop in March sales.