HTC cutting 15% of its workforce in an attempt to end its downward spiral
Following last week’s disappointing revenue numbers for July, HTC has announced today that the company will cut its workforce by 15%. The internal reorganization will leave more than 2,000 HTC employees jobless. HTC has not announced how quickly the jobs will be eliminated, but it is in HTC’s best interest to move as quickly as possible. Sales of HTC phone has been dropping significantly since late 2011, but the overall number of employee at the company has remained pretty stable over that time period. The headcount reduction will allow HTC to significantly reduce it’s overhead costs as the company turns its focus to “profitable key areas of premium smartphones, virtual reality and connected lifestyle products.”
“This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise.”
– Cher Wang, CEO
Analysts have projects at least 18 months before HTC is able to recuperate from its current down-spin, but we’re hoping that drastic internal changes within the company will turn things around and allow HTC to focus. It will take years for HTC to regain the market share it has lost over the past 24 months, but one great flagship smartphone may be all that’s necessary to turn the tides.