HTC to Lay Off 1500 Employees, Nearly a Quarter of its Global Workforce
On July 2, Taiwanese mobile manufacturer HTC announced its plan to lay off 1,500 people as part of a strategic restructuring in Taiwan.
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The planned layoff mainly involves the HTC Taoyuan Plant in Taiwan, which currently employs over 4,000 people. As HTC has hired 6,450 employees globally as of June, the 1,500 workforce reduction would account for 23 percent of its global employment.
According to the New York Times, the downsize is also part of a broader plan to bring HTC’s smartphone and VR businesses under a common leadership in each region.
Founded in 1997, HTC was once at the pinnacle of industry success. In 2007, it entered the smart phone as a pioneer in touch screen capabilities. In 2008, the company became the world’s first mobile phone manufacturer to equip their phones with Google’s Android operating system. In 2010, it led the industry in 4G, dual-lens cameras, all-metal body, with even Apple following suit. However, it has not been profitable for years with its limited sales of VR products and smartphones. In 2017 alone, the company lost nearly 4 billion yuan.
At this point, HTC should be short for “How To Change” as seeking new opportunities could be another – if not more effective – solution to layoffs.
Featured Image Source: REUTERS/Tyrone Siu/Illustration/