Having reported its biggest ever quarterly loss last week (LDM Vol 22 No 33), HTC has announced plans to streamline its business, resulting in a 15% reduction of its global workforce, estimated to be around 2,300 staff.
HTC’s business realignment includes establishing new business units for premium smartphones, virtual reality and Internet-connected lifestyle products, in an effort which the company believes will create greater focus in its key areas. This realignment will also involve a streamlining of operations to result in an expected reduction in operating expenditure of 35%
HTC swung to a Q2 net loss of NT$8 billion ($248.6 million) from a net profit of NT$2.2 billion ($68.3 million) in the second quarter of last year, while turnover dropped 49% year on year to NT$33 billion ($1 billion).
