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HTC to cut workforce by 15% in major overhaul

HTC to cut workforce by 15% in major overhaul

Taipei, Aug. 13 (CNA) Taiwanese smartphone maker HTC Corp. (???) said Thursday it will reduce its global workforce by 15 percent as part of a business realignment plan to seek "significant profitable growth with a leaner and more agile operating model." The program includes the establishment of new business units to create profitable growth in the company's key areas of premium smartphones, virtual reality and connected lifestyle products, HTC said in an emailed statement. "HTC is an inspirational company driven by innovative people, with a unique blend of expertise in hardware and software integration, advanced technology and world-class design," said Cher Wang (???), chairwoman and chief executive officer of HTC. "Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all the exciting opportunities in the connected lifestyle space," she said in the statement. The 15 percent workforce cut is expected to translate into layoffs of around 2,250 of HTC's approximately 15,000 employees worldwide. The plan involves a streamlining of operations to reduce operating expenditure by 35 percent, the company said. "This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise to win new markets," Wang said. HTC shares ended down 7.82 percent at NT$50.7 (US$1.58) on Thursday, a new low since the company went public in March 2002. The stock has lost 64 percent in market value so far this year as it struggles against weak demand across the Android phone market. (By Jeffrey Wu)


Updated : 2021-09-25 05:54 GMT+08:00