HTC announces plans to cut 1,500 jobs in Taiwan

HTC will drop 1,500 domestic employees as part of its strategy to optimize the company's manufacturing

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(Image by Flickr user Karlis Dambrans)

(Image by Flickr user Karlis Dambrans)

TAIPEI (Taiwan News) – As part of HTC’s plans for optimization of its manufacturing process, the company announced on June 2 that it would be cutting 1,500 jobs in Taiwan.

As part of the second stage of its global manufacturing optimization strategy, HTC submitted a large number of dismissal notices to the Labor Bureau of Taoyuan City Government on Monday.

UDN reports that globally HTC employs about 6,450 people currently. After the upcoming round of layoffs, it will be cutting its total work force by almost 20 percent.

HTC claims that the company’s workforce will be more effective after the reorganization and optimization, which is expected to be completed by September this year.

The company has said that it will fulfill its commitment to corporate social responsibility and provide assistance to all of the employees that will be affected, reports UDN.

The report also claims that HTC has developed a plan with labor unions to deal with the foreign workers that will be affected by the restructuring and layoffs, although no further details have been provided. HTC has recently been involved with disputes involving purported mistreatment of foreign laborers.

The first stage of the restructuring and optimization plan was carried out in early 2018, when the company merged its VR business with its smart phone in early 2018, and also transferred a majority of its engineers to Google as part of a very lucrative deal for the company.