High Tech Concern: Struggling HTC to slash a quarter of workforce

HTC is firing 25% of its staff to cut costs once again		
	Jon Russell

   	7 hours

HTC is firing 25% of its staff to cut costs once again Jon Russell @ 7 hours

But, thanks to ramped up competition from other smartphone makers like Apple and Samsung, the company has now found themselves struggling as revenue and sales continue in a downward spiral.

In a statement issued by the company, "Today HTC announces plans to optimize the manufacturing organizations in Taiwan".

All the job cuts will be at its plant in Taiwan, where 1,500 people - roughly 22 of the total workforce - will be let go as the company deals with falling sales.

In the first quarter, HTC posted a net profit of NT$21.1 billion, compared with a net loss of NT$9.8 billion in the previous quarter, with earnings per share of NT$25.70.

According to HTC, the layoffs "will allow more effective and flexible resource management going forward".

The layoffs will be completed by the end of September.

Google and HTC struck a $1 billion plus deal a year ago.

Following the Google deal, HTC announced its first quarterly gains for nearly three years in May, posting a net profit of Tw$21.1 billion.

The smartphone brand said it submitted a layoff report to labor authorities in Taoyuan, where HTC is based, and vowed to abide by the law in carrying out the plan. But while analysts said the Google agreement would mean some immediate benefits for HTC, such as more capital and cost reductions, they predicted a turnaround in its fortunes was unlikely.

After the president of HTC's mobile division resigned earlier this year, the company combined its virtual reality and mobile divisions into one.

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