HTC To Cut 2,250 Jobs By The End Of This Year To Reduce Its Operating Expenses

HTC to cut 2,250 jobs by the end of this year to reduce its operating expenses

BY Rajesh Pandey

Rajesh Pandey

Rajesh is a 26-year old freelance writer from Kolkata, India. He loves to tinker around with his Android devices and flash custom ROMs on them....

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Published 13 Aug 2015

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HTC today announced that it will be slashing its workforce by 15% to reduce its operating expense by more than 1/3rd. Over the last few years, HTC has seen its market share and profit rapidly drop due to the intense competition in the smartphone market.

The company managed to script a comeback in 2013 with the One M7 and followed it up with the One M8 in 2014, which along with some impressive mid-range devices allowed it to turn a minute profit for some quarters. However, with the sales of its disappointing flagship of 2015 — the One M9 — being below par, the company is once again back in the red, which has ultimately forced it to take such a drastic step.

The Taiwanese OEM will be cutting about 2,250 jobs by the end of this year, which will help it reduce its operating expenses by 35%.

With the smartphone market saturating and profits declining, HTC has been looking to expand beyond smartphones. The company announced a partnership with Under Armour earlier this year and will be launching a bevy of fitness tracking products later this year. The company has also partnered with Valve for a VR headset: the HTC Vibe.

[Via WSJ]