Published: Tue, July 03, 2018
Technology | By Christopher Mann

HTC Lays Off 1,500 Employees In Latest Money Saving Reorganization Attempt

HTC Lays Off 1,500 Employees In Latest Money Saving Reorganization Attempt

The renowned company was on the path of making its name as one of the biggest smartphone giants in the world.

Once a star of the intensely competitive smartphone sector, HTC has been struggling in the face of stiff competition from Apple and Samsung as well as strong Chinese brands such as Huawei. While this did put some much-needed money into its coffers, the deal saw 2000 handset engineers become Google employees, and it included a "non-exclusive license for HTC intellectual property". These layoffs are in addition to to earlier layoffs at the company's US offices as part of part of a restructuring that combined its smartphone and VR divisions.

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HTC will be laying off 1,500 workers in its manufacturing unit in Taiwan in a move to streamline its operations and cut loses.

Somewhat inevitably then, it has gone for the fastest and easiest way to do just that by getting rid of a huge amount of its fixed costs, ie: staff and their wages.

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The company reported a 55.5% drop in April revenues year-on-year, according to Reuters.

It's important to note that the 1500 affected staff are not from team that went over to Google to work on the latter's Pixel smartphones, as part of the US$1.1 billion (~RM4.05 billion) deal that the two companies agreed to previous year.

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2018 hasn't been the best year for HTC. The one bright light may be its Vive virtual reality headset.

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