Company - - Jul 05,2018
Taiwanese smartphone-maker, HTC, cuts 1,500 jobs in a move called as “realignment of resources”.
These job cuts are seen as fresh signs that indicate HTC, once a leader in the smartphone market, is stressed to keep afloat in its competitive industry.
HTC released a statement mentioning that, the drop in manufacturing workforce issued by the company is a pivotal step in the “realignment of resources” concerned with business management. It further included, this action will permit flexible procedures for the company in the near future.
Under this move, almost 1,500 job cuts have been announced from the manufacturing unit active in Taiwan. This comprises of almost a quarter workforce getting excluded from the 6,450 staff the company manages globally.
The sacking process would be finished by the end of September; this move is said to be part of a larger plan which merges HTC’s smartphone and VR businesses to be controlled by a common leadership across every region.
In addition, HTC and Alphabet's Google have agreed to a $1.1 bn deal last year. This move has been under the radar by industry experts as a sign that HTC required extra money for stirring ahead with their business ventures.
This particular agreement also causes a major reduction in HTC's workforce as close to 2,000 people from the company’s smartphone research and development team would be heading to Google.
HTC has been manufacturing Google's smartphones, namely, the Pixel and Pixel XL. However, the company was struck with a 55.5% drop in April in terms of revenues as per research reports.