In a desperate bid to stop the bleeding, HTC has announced that the company is laying off 1,500 employees. The job cuts affect HTC’s manufacturing plants, reducing the company’s estimated headcount from 6,450 to roughly 5,000 employees.
HTC has not been profitable in years and has undergone multiple restructurings in attempt to reduce spending. This latest attempt comes just a few months after the closing of its deal to sell 2,000 of its engineering employees to Google. This dramatic reduction of HTC’s workforce from nearly 8,500 employees to only 5,000 will significantly impact the company’s fixed expenses and will force the company to be more focused on products that will have a positive impact on HTC’s bottom line.
It’ll be a while before we know what the actual financial impact of these layoffs will be to HTC’s books, but we’re hoping that it will allow HTC to finally turn things around.
Source: Taiwan News
