Taiwanese mobile manufacturer HTC plans to cut 600 more jobs in an effort to restructure the company. The employee culling is part of a larger effort set by chief executive officer Cher Wang to remove 15 per cent of the HTC’s workforce.
Research and development teams will be hit with the layoffs, 400 in Taoyuan City and 200 in New Taipei City. HTC has already sent layoffs plans to the governors of the two cities, as it seeks approval to begin the corporate restructure.
HTC plans to reduce costs by 35 per cent by 2016 and the 15 per cent employee cut should help towards that. It is also selling off some of its factories in Taiwan and China, which will lower the volume of mobiles produced in the next year.
Even though the mobile provider is not the only one seeing a large drop in sales, HTC has been steadily on decline since 2012. The HTC One, while well reviewed, has never been a game changer in terms of sales or features.
This year, HTC launched the One M9 with mediocre upgrades, which seemed to show a lack of innovation and vision inside the company. That was somewhat debunked with the Vive VR announcement, showing HTC is still active in other areas of the tech world.
HTC may bank on the Vive VR and other new technologies, and keep the mobile industry as a safety net with low production and even lower employee costs. This could work out similar to Nokia’s current business model, although HTC doesn't have the networking or patent power the Finnish company can proclaim.